U.S. Economy shrinks by 2.9 percent in 1st quarter
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.
Read the rest of on Fox Business: HERE
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This well-informed source may be painting things with even more doom and gloom than they deserve, but it points out some very real economic problems.
The key takeaways from this article:
– There have already been multiple revisions to Q1 numbers, which were based on erroneous data or guesstimates. It doesn’t speculate as to whether this was deliberate.
– They opine, that consumers don’t have a cushion to fall back on this time, suggesting that things could get a lot worse.
– Not mentioned here is that the Fed has backtracked on their plan to eliminate QE and raise interest rates- a major retreat.
http://www.shtfplan.com/headline-news/confirmed-the-u-s-economy-has-collapsed-this-is-a-monstrous-negative-revision_06252014
This is really chilling to anyone who understands economics. It means that our great economy is shrinking significantly, even with trillions of dollars of QE/stimulus being pumped into it.
Also, inflation estimates being used are greatly understated, so the actual shrink is much greater- perhaps 3-5%. Grocery prices may be inflating by 20% now. Gasoline is double what it was on 1/20/09. Electric bills are way up.
So the actual, organic economic “growth” is actually a disastrous shink.
It’s even worse per capita, because natural population growth and unnaturally induced illegal immigration are growing the numbers in the USA.