People got healthier? Quit buying healthcare? What?
Methodology screw up with the new Obamacare numbers coming into play.
Here’s Wells Fargo’s take:
First Quarter Contraction Deeper Than Initially Thought
Recording larger declines with each revised estimate, real GDP contracted at a 2.9 percent annual rate in Q1.
A swift rebound in economic activity should unfold in Q2, with firming rates of growth expected in H2.
Health Care Spending Reversal
- The third pass at first quarter GDP resulted in the largest quarterly contraction since Q1 2009. Consumer healthcare
spending, once thought to have been a positive, subtracted
0.16 percentage points from overall growth. As such, total
consumer spending is now reported to have expanded at a
1.0 percent annual rate, substantially lower than the previously reported 3.1 percent estimate.