US economy contracts .7 percent in first quarter, BEA first revision of Q1 GDP, First time in 60 years 3 quarters, Worst personal spending contribution since Q1 of last year
“There’s no other way to say this. The official unemployment rate, which cruelly overlooks the suffering of the long-term and often permanently unemployed as well as the depressingly underemployed, amounts to a Big Lie.”…Gallup CEO Jim Clifton
“In today’s labor market, there are nearly 1 million “missing” young workers—potential workers who are neither employed nor actively seeking work (and are thus not counted in the unemployment rate) because job opportunities remain so scarce. If these missing workers were in the labor market looking for work, the unemployment rate of workers under age 25 would be 18.1 percent instead of 14.5 percent.”…Economic Policy Institute May 1, 2014
“We are being lied to on a scale unimaginable by George Orwell.”…Citizen Wells
The US economy contracted .7 percent instead of the sluggish .2 reported earlier.
Not to worry, it’s just another anomaly, probably the harsh winter brought on by climate change.
From Zero Hedge May 29, 2015.
“”Welcome To The Contraction”: Q1 GDP Drops By 0.7%, Corporate Profits Crash”
“And you thought the preliminary 0.2% Q1 GDP print from last month was bad. Moments ago, just as we warned, the BEA released its latest, first, revision of Q1 GDP (pre second-seasonal adjustments of course), and we just got confirmation that for the third time in the past four years, the US economy suffered a quarterly contraction, with the Q1 GDP revised drastically from a 0.2% growth to a drop of -0.7%: the worst print since snow struck, so very unexpectedly, last winter.”
“Incidentally, there has not been a US “expansion” with three negative quarters in it in the past 60 years.
Worse, the breakdown shows that far from being a non-core slowdown, consumption rose just 1.8%, below the 2.0% expected, and contributed just 1.23% of the bottom line GDP number. This was the worst Personal Spending contribution since Q1 of last year, when revised GDP dropped by -2.11%.”
From the White House April 29, 2015.
“Economic growth in the first quarter was restrained by factors including tepid foreign demand and harsh winter weather. At the same time, households saved most of their gains from low energy prices, Over the past four quarters, the most persistent and stable components of GDP — consumption and fixed investment — have grown 3.3 percent. This trend complements the strong pace of job growth and unemployment reduction over the last year. This report underscores that the U.S. economy is directly affected by the global economy, making clear the importance of advancing Trade Promotion Authority in Congress so the President can take further steps to open up markets abroad to increase U.S. exports and expand opportunities for the middle class. In addition, we could further solidify the positive trends in the domestic economy by expanding investments in infrastructure and ensuring the sequester does not return in the next fiscal year as outlined in the President’s FY2016 Budget.”