Great News! US Economy Contracted 0.7% In The First Quarter

weaselzippers;

This is one amazing economic recovery!

Via CNS News:

(CNSNews.com) – Initial estimates of positive economic growth in the first quarter of 2015 have now turned negative.

The U.S. economy actually shrank in the first quarter of 2015 as real gross domestic product (GDP) declined at an annual rate of 0.7 percent, according to the Obama administration’s second look at the numbers.

The 0.7 percent decline in first-quarter real GDP was revised from the previously reported gain of 0.2 percent, which was the advance estimate put out at the end of April by the Commerce Department and the Bureau of Economic Analysis (BEA). Real GDP is adjusted for inflation and represents the value of the production of goods and services in the United States.

Real GDP of -0.7 percent in the first (January-March) quarter was lower than the real GDP estimate of 2.2 percent in the fourth (October-December) quarter of 2014. It was also lower than the third quarter 2014 estimate of 5.0 percent.

“The decrease in real GDP in the first quarter primarily reflected negative contributions from exports (imports increased more), nonresidential fixed investment (purchases of nonresidential structures and equipment and software), and state and local government spending that were partly offset by positive contributions from personal consumption expenditures, private inventory investment, and residential fixed investment,” states BEA. “Imports, which are a subtraction in the calculation of GDP, increased.”

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Thank You CNS and Mr Stone.