Large Contraction in U.S. Economy worth a Re-post

by Laura Ehrenberg-Chesler on June 25, 2014

in blog,Economic Indicators

We try hard on our blog not to recycle the latest news that is easy to access from other sources. Today is an exception.

CNBC has a good article on the revised GDP number from the first quarter, and I decided to post a section from that article, and give our readers the link if they want to read it in its entirety. 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.

Leave a Comment

Previous post:

Next post: