U.S. Economy Shrinks By Most Since Great Recession in 1Q (-2.9%)

Reuters via Fox Business ^ | Wednesday, June 25, 2014

[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.

[Whenifhow]

Stuart Varney - worst shrinkage in 58 years

3:33 Minutes

RPT: U.S. Economy Shrank 2.9% In First Quarter , Worst Showing Since Recession - America’s Newsroom
http://www.youtube.com/watch?v=bZyWp09U46E

[Deo volente]

Dow up 62 points and climbing.

Market couldn’t care less about GDP.

[Wyatt's Torch]

“Good” growth is 3%+. We aren’t there. Decent 2%+ which we should see Q2-Q4 and what we’ve seen the last several years. Sub-optimal for sure but decent.

[Jeff Chandler]

I remember when Bush presided over the worst economy since the Great Depression.

[Wyatt's Torch]

:-)

“In response to today’s data, we have revised up our forecast of real GDP growth in Q2 2014 to 4.0% from 3.0%,” writes Barclays’ Dean Maki. “We have raised our forecast of real consumer spending to 3.5% from 3.0%, as we expect that some of the anticipated health care spending originally expected in Q1 2014 will now occur in Q2 2014. We have also modestly changed our assumptions for net exports and inventories to be a bit more favorable in Q2 2014 than previously expected.”

[HeartlandOfAmerica]

Let’s not forget the Redskins! High priority!!!

[1Old Pro]

The Obama recession continues.

Even the low information voters will feel the pinch and the Dems will get blown out in November if the GOP can walk and chew bubblegum.

[GraceG]

The economy is no longer being propped up by Fiat currency and is now only being “propped up” by the Hollow words and justification of know LIARS....

[kabar]

“Good” growth is 3%+. We aren’t there. Decent 2%+ which we should see Q2-Q4 and what we’ve seen the last several years. Sub-optimal for sure but decent.

So it will amount to less than 1.5% growth for the 2014 calendar year.

1.5% GDP growth is not even treading water. Real GDP increased 1.9 percent in 2013. We seem to be heading lower.

[kabar]

Tyler Durden must be on to something.

[LostInBayport]

Not seeing this too much in the legacy media.

It will be interesting to see how they avoid talking about it if we have a second quarter of negative numbers.

[Zakeet]

I thought that Aunt Clara had died...

You've got a good point ... but in my opinion, Janet better resembles another Hollyweird character.

[Patriotic1]

Nor does the administration like the economy it would seem.

[Deo volente]

For a less rosy picture of what's happening:

For most families, wealth has vanished

[webheart]

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

There is no mystery. Housing is being bought up by foreign investors and then rented back to Americans who pay the rent with welfare, unemployment insurance and disability insurance benefits.

[PghBaldy]

"US GDP has never fallen more than 1.5% except during or just before an NBER-defined recession since quarterly GDP records began in 1947."

http://www.zerohedge.com/news/2014-06-25/gdp-disaster-final-q1-gdp-crashes-29-worst-2009-far-below-worst-expectations

[PghBaldy]

You are right. We have the worst of both worlds: a horrible economy, and rising prices for necessities. Either one is bad enough.

[Deo volente]

Rents are soaring too. Here in L.A. a tiny studio apartment in a decent area will start at $1,000/month.
In Orange County it's even worse. A two-bedroom can easily run $2,500.

[JLAGRAYFOX]

You good folks...just don’t get it!!! Obama is on a personal mission to destroy the United States of America!!! Everything he does...everything he touches, he seeks to degrade and destroy the economy, the people, all of them, including the country, itself. He has put us all in harm’s way. I sincerely fear for what is coming from his Muslim terrorists buddies to kill and injure our innocent American citizens on our own soil.

And.....what do the American people & Democrat, low life vermin do, they stand by like weak, sheep being led to the slaughter. Sad & pathetic...this inaction from a once great nation,,,,that Obama has made not great at all!!!

Get with it, Americans,.....Obama hates both Americans and the country itself...and his phoney wife. Michelle is the worst racist hater of all!!! End of story!!!

[Cubs Fan]

Obamanomics