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U.S. Economy Shrinks By Most Since Great Recession in 1Q (-2.9%)
Reuters via Fox Business ^ | Wednesday, June 25, 2014

Posted on 06/25/2014 5:47:58 AM PDT by kristinn

The U.S. economy contracted at a much steeper pace than previously estimated in the first quarter, but there are indications that growth has since rebounded strongly.

The Commerce Department said on Wednesday gross domestic product fell at a 2.9 percent annual rate, the economy's worst performance in five years, instead of the 1.0 percent pace it had reported last month.

While the economy's woes have been largely blamed on an unusually cold winter, the magnitude of the revisions suggest other factors at play beyond the weather. Growth has now been revised down by a total of 3.0 percentage points since the government's first estimate was published in April, which had the economy expanding at a 0.1 percent rate.

The difference between the second and third estimates was the largest on records going back to 1976, the Commerce Department said.

Economists had expected growth to be revised to show it contracting at a 1.7 percent rate. Sharp revisions to GDP numbers are not unusual as the government does not have complete data when it makes its initial and preliminary estimates.

(Excerpt) Read more at foxbusiness.com ...


TOPICS: Breaking News; Business/Economy; News/Current Events
KEYWORDS: greenshoots; obamahatesme; obamahatesyou; obamasfault; recession
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Unexpected.
1 posted on 06/25/2014 5:47:58 AM PDT by kristinn
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To: kristinn

That’s a huge decline.


2 posted on 06/25/2014 5:50:45 AM PDT by Williams
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To: kristinn

Leftism, by any of its’ brand names, always fails economically, culturally and morally.

Always.

Only an intellectual idiot would continue to believe in leftism’s hoax and lies.

Kinda like believing in human caused globull warming.


3 posted on 06/25/2014 5:51:31 AM PDT by newfreep
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To: Williams

Not seeing this too much in the legacy media.


4 posted on 06/25/2014 5:51:42 AM PDT by Tea Party Terrorist (Why work for a living when you can vote for a living?)
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To: kristinn
"Sharp revisions to GDP numbers are not unusual as the government does not have complete data when it makes its initial and preliminary estimates."

And...they're trying to manage the bad news: put out a bad number and let the news die down, then later massively revise it down and that revision gets less news coverage.

5 posted on 06/25/2014 5:52:06 AM PDT by SW6906 (6 things you can't have too much of: sex, money, firewood, horsepower, guns and ammunition.)
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To: kristinn

It’s still Bush’s fault!!!


6 posted on 06/25/2014 5:52:26 AM PDT by stremba
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To: kristinn

Is it Recovery Summer yet?


7 posted on 06/25/2014 5:52:28 AM PDT by ArmstedFragg (Hoaxey Dopey Changey)
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To: kristinn
... there are indications that growth has since rebounded strongly

Indications are everywhere...shrinking work force, inflation through the roof, falling wages, downward mobility.

You can't go too far wrong with more of the same.

8 posted on 06/25/2014 5:52:44 AM PDT by stevem
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To: kristinn

With Democrats one always must expect the unexpected.


9 posted on 06/25/2014 5:53:03 AM PDT by rockinqsranch (Dems, Libs, Socialists, call 'em what you will. They ALL have fairies livin' in their trees.)
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To: SW6906

Bad winter?


10 posted on 06/25/2014 5:53:03 AM PDT by SIRTRIS
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To: kristinn

Green shots are right around the corner comrades! I’m sick of hearing that for the last 6 years.


11 posted on 06/25/2014 5:53:13 AM PDT by erod
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To: Williams

Odungacare is a big factor IMO.


12 posted on 06/25/2014 5:53:35 AM PDT by DAC21
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To: kristinn

America we are handing the future to China.

We need to work. Here.

Bring back American production.


13 posted on 06/25/2014 5:54:28 AM PDT by Cringing Negativism Network (http://www.census.gov/foreign-trade/balance/c5700.html#2013)
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To: kristinn

When hamburger costs $5/lb. and every item has been downsized so that “a pound” of coffee is now 11 oz., most people are having trouble just surviving in this horrible economy.


14 posted on 06/25/2014 5:55:04 AM PDT by txrefugee
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To: SW6906

And...they’re trying to manage the bad news: put out a bad number and let the news die down, then later massively revise it down and that revision gets less news coverage. “

This has been happening month after month for the last five years with the unemployment figures.


15 posted on 06/25/2014 5:55:04 AM PDT by MNGal
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To: MNGal

Yup!


16 posted on 06/25/2014 5:55:28 AM PDT by SW6906 (6 things you can't have too much of: sex, money, firewood, horsepower, guns and ammunition.)
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To: kristinn

At this point, it is probably preferable for the whole thing to burn.


17 posted on 06/25/2014 5:56:37 AM PDT by Viennacon
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To: kristinn
"There are indications that growth has rebounded sharply"


18 posted on 06/25/2014 5:56:47 AM PDT by icwhatudo (Low taxes and less spending in Sodom and Gomorrah is not my idea of a conservative victory)
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To: kristinn

OK, we lied to you about the last quarter’s results, but you can absolutely trust our projections for the next quarter, honest!


19 posted on 06/25/2014 5:57:18 AM PDT by PTBAA
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To: kristinn

you print paper money....and it loses value.

taxation by inflation.


20 posted on 06/25/2014 5:57:47 AM PDT by Vaquero (Don't pick a fight with an old guy. If he is too old to fight, he'll just kill you.)
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To: kristinn
"The difference between the second and third estimates was the largest on records going back to 1976, the Commerce Department said."

Congress needs to request emails between Commerce and the White Hut before the hard drive crashed.

21 posted on 06/25/2014 5:58:44 AM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: icwhatudo

“There are indications that growth has rebounded sharply”

Yeahhhh that’s the ticket.


22 posted on 06/25/2014 5:59:21 AM PDT by DAC21
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To: kristinn

Just noise ... weather related noise

23 posted on 06/25/2014 6:02:07 AM PDT by Zakeet (If voting made any difference, they wouldnÂ’t let us do it - Mark Twain)
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To: kristinn

Housing has been selling like hotcakes. There’s a puzzling disconnect with the economic growth number.


24 posted on 06/25/2014 6:02:58 AM PDT by Zhang Fei (Let us pray that peace be now restored to the world and that God will preserve it always.)
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To: PTBAA

Yeah, so they release a modified -2.9% so what’s it really? -5%?


25 posted on 06/25/2014 6:04:00 AM PDT by MrB (The difference between a Humanist and a Satanist - the latter admits whom he's working for)
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To: kristinn
Unexpected.

Not if one believes in cause and effect...

26 posted on 06/25/2014 6:04:24 AM PDT by LucianOfSamasota (Tanstaafl - its not just for breakfast anymore...)
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To: DAC21

It was in this revision contributed -1.3%


27 posted on 06/25/2014 6:04:46 AM PDT by Wyatt's Torch
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To: kristinn

The economy is coming back, it’s just very uneven and erratic. Every retailer I talk to says it’s like a wave, up and then down and then up and then down, but better.

I regularly see retailers from KFC to HHGreg with handmade signs and employees standing with them on roadside announcing some daily special. That’s scary.

On the upside, whichever party wins the presidency is in for a boom time. If it’s a Democrat or GOPe it will be muted, but if it is a real conservative, it will be a long and wonderful boom. All you need to do is hold the budget to zero increase, lower cap gains taxes back to 10% or zero it out, get corporate taxes down to below 20% (again zero is the correct number, but libs will go nuts), and end all the red tape that’s burdening energy and business formation. That can be done with a GOP House, Senate and conservative POTUS.

Once the economy booms...


28 posted on 06/25/2014 6:05:14 AM PDT by 1010RD (First, Do No Harm)
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To: kristinn
Comrade, we did not meet our Five Year Plan quotas because of the weather.

Yeah. That's it, "the weather".

And it that excuse fails, we can always blame foreign spies, Kulaks, capitalist wreckers, and Hooligans...

29 posted on 06/25/2014 6:05:57 AM PDT by Gritty (The war is over. We won. - Michael Yon, Top Iraq War Correspondent, 07/21/2008)
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To: SW6906

No, they’re trying to manage the economy with Coke bottle glasses and a Martini.


30 posted on 06/25/2014 6:05:57 AM PDT by 1010RD (First, Do No Harm)
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To: kristinn
"Prosperity is just around the corner."


31 posted on 06/25/2014 6:06:28 AM PDT by Fresh Wind (The last remnants of the Old Republic have been swept away.)
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To: SW6906

The revisions are scheduled far ahead of time. So you have it for your calendar:

Q2 1st estimate will be July 30th
Q2 2nd estimate will be August 28th
Q2 3rd estimate will be September 26th


32 posted on 06/25/2014 6:06:56 AM PDT by Wyatt's Torch
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To: kristinn
A huge issue few people talk about is companies are NOT hiring because of the uncertainly over the Obamacare mandates that kicked in starting this year. Until we get real clarity on the new mandates, nobody is interested in large-scale hiring due to the fear of a potentially huge bill to comply with the mandates.
33 posted on 06/25/2014 6:08:35 AM PDT by RayChuang88 (FairTax: America's economic cure)
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To: Zhang Fei

That and +600K job growth during the quarter. That is completely incongruent with a GDP number like this.


34 posted on 06/25/2014 6:08:43 AM PDT by Wyatt's Torch
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To: kristinn

That quarter saw decreased sales, consumer spending, and contracting supplies while at it was higher government spending at the same time.

So, the government took more away from an economy that was generating less.

Is it any wonder they blame the weather? If I remember my history, the more an economy gets taxed, the less business it generates. They were bragging a few weeks ago about record setting tax receipts.


35 posted on 06/25/2014 6:09:13 AM PDT by xzins ( Retired Army Chaplain and Proud of It! Those who truly support our troops pray for victory!)
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To: txrefugee

As a single person household, my typical weekly grocery bill ran about $28 three years ago. Last year it was around $40. More recently, it has been around $60.

Many food item prices have jumped 25% or more, and many of those have also been the afflicted with product shrinkage.


36 posted on 06/25/2014 6:09:13 AM PDT by TomGuy
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To: txrefugee

I’m still bitter about the 39 Oz. cans of Maxwell House coffee being reduced to 28 Oz. plastic jars.

I’m stocking up on their 100% Columbian due to S. American coffee fungus and other stuff. The 28 Oz. jars were $6.78 at WM last weekend. I like to have a 6 month supply to wait out the spikes.


37 posted on 06/25/2014 6:09:22 AM PDT by Justa
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To: RayChuang88

Agree with that completely. Ditto for all the other regulations and tax laws. It is the most anti-business environment in American history.


38 posted on 06/25/2014 6:09:42 AM PDT by Wyatt's Torch
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To: kristinn

So let’s see. Any bets on how this gets blamed on Bush?


39 posted on 06/25/2014 6:10:06 AM PDT by Opinionated Blowhard ("When the people find they can vote themselves money, that will herald the end of the republic.")
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To: kristinn

Sheesh you’ld have thunk with everyone saving 2,500 dollars on their new government imposed healthcare the economy would have gone crazy with all the personal expendable income


40 posted on 06/25/2014 6:10:09 AM PDT by VRWCarea51
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To: newfreep; kristinn
Only an intellectual idiot would continue to believe in leftism’s hoax and lies.

Even the left should wake up, one day, maybe. Have to believe most of the left is going on skin color alone to support the one doing the most damage. The left is certainly not listening to Martin Luther King Jr.

41 posted on 06/25/2014 6:11:44 AM PDT by no-to-illegals (Scrutinize our government and Secure the Blessing of Freedom and Justice)
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To: kristinn

42 posted on 06/25/2014 6:12:01 AM PDT by dead (I've got my eye out for Mullah Omar.)
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To: kristinn
but there are indications that growth has since rebounded strongly.

Riiiiiiiight.

43 posted on 06/25/2014 6:12:12 AM PDT by dfwgator
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To: xzins
That quarter saw decreased sales, consumer spending, and contracting supplies while at it was higher government spending at the same time.

That's just not accurate.


44 posted on 06/25/2014 6:12:13 AM PDT by Wyatt's Torch
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To: txrefugee
most people are having trouble just surviving this horrible economy

That's not exactly true. There are two economies. The elite....globalists and those who are part of their manipulation of the masses have never been better off. Public employees with just an ounce of sense of budgeting are well off and secure. There will always be those who have necessary skills and will thrive.

It's the other 75% or so of the population that's hurting. The gap is getting worse. It feels like the rest of us are a cash crop for the elite, given no more money than we'll spend, with the elite profiting every time the bottom 75% spend their limited resources.

The best way to turn the tide would be local spending, manufacturing, and small business/individual commerce.

45 posted on 06/25/2014 6:12:22 AM PDT by grania
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To: Zhang Fei

Houses > $1M are selling.....the lower market has been declining.


46 posted on 06/25/2014 6:12:35 AM PDT by newfreep
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To: erod

That is what I fear! Green “shots” around the corner.


47 posted on 06/25/2014 6:13:48 AM PDT by RipSawyer (May the force be with you against the farce.)
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To: Zhang Fei; Wyatt's Torch

Well, is the housing selling for what it was supposedly worth a few years back and are the jobs worth a bucket of warm spit?


48 posted on 06/25/2014 6:14:50 AM PDT by John W (Summer of Recovery VI: This Time We're Serious)
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To: Williams

That’s a huge UNEXPECTED decline...........................


49 posted on 06/25/2014 6:15:23 AM PDT by Red Badger (I've posted a total of 2,740 threads and 84,814 replies.)
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To: Wyatt's Torch

Odungacare

“It was in this revision contributed -1.3%”

What until the vast majority of folks with Health Ins through their employer get hit with the bill this fall. 1st qtr. 2015 should be a doozy


50 posted on 06/25/2014 6:15:33 AM PDT by DAC21
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