The Commerce Department announced that the U.S. economy shrank by 0.7% in the first quarter of 2015, revising down their initial estimate that the economy grew by 0.2%. "Recovery" numbers are at least +3% growth, but today, we are going backwards.
The truth is, this economy has one foot in recession. The true definition of a recession is 2 back-to-back quarters of negative GDP.
We are not even close to a true recovery.
AP first puts the blame on (wait for it) a "brutal winter"...Then says, don't worry this will be "short-lived"..."little cause for concern"
WASHINGTON (AP) -- A brutal winter, plunging investment by energy companies and a widening trade gap likely combined to shrink the U.S. economy at the start of the year. But the slump is expected to prove short-lived.
The government on Friday will issue its second of three estimates of the economy's performance, as measured by the gross domestic product, in the January-March quarter.
Economists surveyed by data firm FactSet predict that the government will say GDP shrank at an annual rate of 0.8 percent last quarter. That would be much weaker than its first estimate: 0.2 percent annual growth.
Though falling GDP can be a sign of a recession, economists see little cause for concern. They are forecasting solid GDP growth the rest of the year, with steady job gains propelling the economy.
A harsh winter is gone. So is a labor dispute that slowed trade at West Coast ports. Home sales and construction are rebounding. Business investment is picking up.
Many economists also suspect that the government's calculations have tended to underestimate growth in the first quarter of each year
Fox Business Stuart Varney: The trend is toward recession... And Obama shows no sign of changing direction
Commerce Secretary reacts to the GDP numbers: "Actually, I think things are pretty good"