US GDP shrinks 2.9% in first quarter

[Raphael]

BBC News - US GDP shrinks 2.9% in first quarter

The US economy suffered its worst performance for five years in the first quarter of 2014, latest figures show.

The economy shrank at an annualised rate of 2.9% in the first three months of the year, the third estimate from the US Commerce Department showed.

This was worse than the previous estimate of a 1% contraction, and also worse than economists' expectations.

However, the economy is expected to have recorded a sharp recovery during the second quarter of the year.

The White House said the figures showed the economic recovery was still in progress, but added other indicators for April and May suggest a rebound in the second quarter.
Spending downgrade
The unusually cold weather in the first quarter of the year has been blamed for the poor performance of the economy.

However, the gap between the second and third estimates of US growth for the quarter was the largest on record.

The latest revision came as a result of a weaker pace of healthcare spending than previously assumed, which caused a downgrading of the consumer spending estimate.

Consumer spending - which is responsible for more than two-thirds of US economic growth - increased by 1% in the quarter, rather than the 3.1% rate as first estimated.

Trade was also a bigger drag on the economy than previously thought, with exports falling by 8.9% rather than a previously estimated 6%.

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-2.9% is far worse than their initial estimate of -1%. Looks like it will be a while before the US economy rebounds.

 

[F-22Raptor]

The economy slowed due to a harsh winter. Economists aren't particularly worried because surging growth is expected for the rest of the year.

 

[Raphael]

The economy slowed due to a harsh winter. Economists aren't particularly worried because surging growth is expected for the rest of the year.

Canada also experienced the same harsh winter, and they grew at 1.2%, instead of a predicted 1.8%. That seems like a far more reasonable effect of bad weather. I don't think a 2.9% decrease can be blamed on bad weather alone.

Canadian economy starts 2014 with weak GDP gain - Business - CBC News

 

[LeveragedBuyout]

BBC News - US GDP shrinks 2.9% in first quarter

The US economy suffered its worst performance for five years in the first quarter of 2014, latest figures show.

The economy shrank at an annualised rate of 2.9% in the first three months of the year, the third estimate from the US Commerce Department showed.

This was worse than the previous estimate of a 1% contraction, and also worse than economists' expectations.

However, the economy is expected to have recorded a sharp recovery during the second quarter of the year.

The White House said the figures showed the economic recovery was still in progress, but added other indicators for April and May suggest a rebound in the second quarter.
Spending downgrade
The unusually cold weather in the first quarter of the year has been blamed for the poor performance of the economy.

However, the gap between the second and third estimates of US growth for the quarter was the largest on record.

The latest revision came as a result of a weaker pace of healthcare spending than previously assumed, which caused a downgrading of the consumer spending estimate.

Consumer spending - which is responsible for more than two-thirds of US economic growth - increased by 1% in the quarter, rather than the 3.1% rate as first estimated.

Trade was also a bigger drag on the economy than previously thought, with exports falling by 8.9% rather than a previously estimated 6%.

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-2.9% is far worse than their initial estimate of -1%. Looks like it will be a while before the US economy rebounds.

The US economy will have a ceiling of 2% GDP growth as long as a Democrat sits in the White House. I hope China's slowdown doesn't continue, or the world will be in trouble.

 

[Raphael]

The US economy will have a ceiling of 2% GDP growth as long as a Democrat sits in the White House. I hope China's slowdown doesn't continue, or the world will be in trouble.

Our slowdown is dropping from double-digit growth to 7.5% growth. It's certainly something we can live with.

Anyway, we hope you get a solid, pro-business President come 2016 too. As one of our biggest export markets, it's not in our interests to see you flounder either! If someone like Hillary comes to power, it really will be game over .

 

[SR-91]

The US economy will have a ceiling of 2% GDP growth as long as a Democrat sits in the White House. I hope China's slowdown doesn't continue, or the world will be in trouble.

Slow it down.... It was republican's mess that got us here in the first place....We had a rising economy when george and dick took over. Blame republicans for that.

 

[LeveragedBuyout]

Slow it down.... It was republican's mess that got us here in the first place....We had a rising economy when george and dick took over. Blame republicans for that.

We had a rising economy? NBER set the economic peak at March 2001--you're going to blame Bush for the recession just two months into his term?

Your propaganda won't fly here. Unlike the majority of Democrats, I still retain my critical thinking skills.

 

[madooxno9]

well i knew it would be bad .. actually every trader knew but 2.9 was surprise. I bought gold just before the news and checked out after news .. was good profit day .

 

[Edison Chen]

US economy stronger than EU

 

[SR-91]

We had a rising economy? NBER set the economic peak at March 2001--you're going to blame Bush for the recession just two months into his term?

Your propaganda won't fly here. Unlike the majority of Democrats, I still retain my critical thinking skills.

Do you have any idea, how much money he spend on two wars???
allow me to give you a hint, its in TRILLIONS. UN-fking necessary, when u have Trillions of dollars fly away in months, recession follows.

So take your propaganda and stick it in your axx.

 

[Desert Fox]

Our slowdown is dropping from double-digit growth to 7.5% growth. It's certainly something we can live with.

Anyway, we hope you get a solid, pro-business President come 2016 too. As one of our biggest export markets, it's not in our interests to see you flounder either! If someone like Hillary comes to power, it really will be game over .

The growing number of gov.t handouts receivers, welfare leechers, abortion supporters, faggots, and ultra feminists will actually make sure another Democrat occupies the White House for another 4 years. Now if Obummer gives amnesty to the millions of illegals then you can forget about a republican ever becoming the president of this country. Not that i think Republicans actually care for this country, neither party does to be quite honest.

 

[LeveragedBuyout]

Do you have any idea, how much money he spend on two wars???
allow me to give you a hint, its in TRILLIONS. UN-fking necessary, when u have Trillions of dollars fly away in months, recession follows.

So take your propaganda and stick it in your axx.

Despite your immaturity, I will take your comment seriously. Those trillions were spent on the US defense industry and contractors, flowing through to logistics operators, suppliers, and worker income. Are you so uneducated as to think that the money was burned in a bonfire? Fiscal spending has a multiplier effect. Did you notice that Bush steered the economy back to full employment by 2005, but your messiah hasn't managed to do so. Your clown prince also committed the US to spend "TRILLIONS. UN-fking necessary" waste on his CommieCare initiative, which will drag down the US economy for decades, just as all the other entitlement programs have.

When you go to college, make sure you study some economics so you don't embarrass yourself next time.

 

[tranquilium]

Despite your immaturity, I will take your comment seriously. Those trillions were spent on the US defense industry and contractors, flowing through to logistics operators, suppliers, and worker income. Are you so uneducated as to think that the money was burned in a bonfire? Fiscal spending has a multiplier effect. Did you notice that Bush steered the economy back to full employment by 2005, but your messiah hasn't managed to do so. Your clown prince also committed the US to spend "TRILLIONS. UN-fking necessary" waste on his CommieCare initiative, which will drag down the US economy for decades, just as all the other entitlement programs have.

When you go to college, make sure you study some economics so you don't embarrass yourself next time.

Personally, I understand why Bush went to war in Middle East. As costly as it is, it was better aligned with US' long term interest than anything Obama did. The specific execution, of course, is somewhat sloppy, especially comparing to Bush Sr.'s execution in the first Gulf war, but part of that has to do with the changing global political climate post 1991.

Obama is...overhyped to be honest. In all honesty, his title of "first black president in US" is really overshadowing the fact his administrative career prior to his presidency is rather lackluster. I mean, I don't expect him to go through every single level of the administrative position like the Chinese leaders, but I would at least expect a presidential candidate to have governor of a state and/or vice-president on his resume like pretty much every president before him in the past century. (I think the only US president in the past century that doesn't have either vice-president or state governor on his resume is JFK.) But what can you do, the other candidate of democratic party is Hillary Clinton, who has an equally lackluster resume and there is no way Republicans can win a popularity vote after the 2008 financial disaster (Not to mention McCain's resume is ALSO nothing to write home about).

 

[Chinese-Dragon]

Despite your immaturity, I will take your comment seriously. Those trillions were spent on the US defense industry and contractors, flowing through to logistics operators, suppliers, and worker income. Are you so uneducated as to think that the money was burned in a bonfire? Fiscal spending has a multiplier effect. Did you notice that Bush steered the economy back to full employment by 2005, but your messiah hasn't managed to do so. Your clown prince also committed the US to spend "TRILLIONS. UN-fking necessary" waste on his CommieCare initiative, which will drag down the US economy for decades, just as all the other entitlement programs have.

When you go to college, make sure you study some economics so you don't embarrass yourself next time.

If Ayn Rand had heard of these socialist schemes like Obamacare, she would have committed suicide.

 

[tranquilium]

If Ayn Rand had heard of these socialist schemes like Obamacare, she would have committed suicide.

I think Obama is trying to leave behind a legacy. Something that people will remember him for and he is wasting no expense doing it.