Bad to worse: US economy shrank more than expected in Q1

CNBC ^ | June 25,2014

[Hojczyk]

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.

The latest revisions reflect a weaker pace of healthcare spending than previously assumed, which caused a downgrading of the consumer spending estimate. Trade was also a bigger drag on the economy than previously thought. The economy grew at a 2.6 percent pace in the final

[Don Corleone]

Deliberate subversion of the worlds mightiest economic machine for purely political gains, ie; installation of a Marxist Dictatorship.

[VanDeKoik]

Bring in a bunch of illegal immigrants and see it plunge by November.

[cuban leaf]

Watch for people, en mass to become like pets just before an earthquake. In a way, it’s already happening.

[Daveinyork]

Hope and change. The people in the former soviet empire must be getting a kick out of the blame the weather is getting.

[mj1234]

people are not paying their “fair share of taxes”
Like Hillary and Bill-

Evil corporations not hiring enough workers!

Evil Oil- dragging down the economy!

And finally- not enough workers!- let the illegals in!

[sheana]

You are fooling yourself. The welfare checks will never stop. If they have to defund everything else the welfare checks will go on.

[Nowhere Man]

That’s what scares me.

[JohnBovenmyer]

That was my first thought. Let 2nd qtr come in even -0.1% by the time of its final revisions in September and the Rats have to defend their recession in the fall elections. They don't think they, and their media, can fudge the numbers enough... in the quarter... to prevent that. So they shift a bunch of 2nd qtr duds into the final 1st qtr revision. More will show up in the post-election 3rd qtr revisions. And the 4th qtr numbers will be atrocious. Meanwhile the Great Depressing continues.

[IC Ken]

re>
You are fooling yourself. The welfare checks will never stop. If they have to defund everything else the welfare checks will go on.

Maybe but when it gets to a point of defunding Gubment or cutting back entitlements. I know which one will win.

[Pining_4_TX]

Ah, yes, thank you.

Also, the war on women and income inequality.

[GeronL]

unexpectedly!