Q1 GDP Revised Down to -2.9%

The government revised downward its report for Q1 GDP growth. Or shrinkage rather. The economy dropped by 2.9% annualized for the first three months of the year. That’s a very surprising number. This was the worst quarter for economic growth in five years.

Two months ago, the initial report said the economy grew by a scant 0.1%. Then a month ago, that was revised lower to a 1% drop. Now it’s a drop of 2.9%. Personal Consumption Expenditures (PCE), which is the key part of GDP, was revised down from 3.1% to 1%.

Over the last 13 quarters, the U.S. economy has grown by 5.9%, which is just 1.8% annualized. Officially, this is the recovery.

Posted by Eddy Elfenbein on June 25th, 2014 at 11:12 am

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.