The National  Memo Logo

Smart. Sharp. Funny. Fearless.

Monday, December 09, 2019 {{ new Date().getDay() }}

Washington (AFP) – The U.S. economy contracted at an annual rate of 1 percent in the first three months of 2014, a significantly weaker performance than initially estimated, official data showed Thursday.

It was the first time the world’s largest economy shrank since the 2011 first quarter. The contraction was twice as strong as analysts’ consensus estimate.

The Commerce Department previously estimated gross domestic product (GDP) grew a tepid 0.1 percent in the first quarter that was marked by unusually severe winter weather.

The weakness was more than accounted for by a marked decline in inventory investment, especially by motor vehicle dealerships, the Commerce Department said.

Inventory investment was revised down, particularly in retail trade, manufacturing, mining, utilities and construction.

Excluding inventory investment, GDP grew 0.6 percent in the first quarter.

Imports, which subtract from GDP, were revised higher.

Also contributing to the fall in GDP were declines in exports, business investment, state and local government spending and housing investment.

“Ouch. The bad news is that the headline GDP number is worse than consensus, but the good(ish) news is that almost all the hit is in the inventory component,” said Ian Shepherdson of Pantheon Macroeconomics in a research note.

Analysts view the first-quarter slump as largely winter weather-related after the economy grew 2.6 percent in the 2013 fourth quarter.

Economic indicators have pointed to a rebound in activity in the second quarter.

“We still think Q2 growth of about 3.0 percent is a decent bet,” said Shepherdson.

AFP Photo/Justin Sullivan

Start your day with National Memo Newsletter

Know first.

The opinions that matter. Delivered to your inbox every morning

Former anti-vaxxer Linda Edwards

Screenshot from CNN

We have seen plenty of stories about stubborn anti-vaxxers, but what about those vaccine resisters who became seriously ill with the deadly coronavirus that is ripping through unvaccinated communities? As a CNN segment shows, many who survived are singing a different tune now.

"If I live through this," one former anti-vaxxer said of her life-threatening bout with COVID. "I want to go on a mission to try to help people to see that it is not worth not taking the vaccine."

Keep reading... Show less

From left, Reps. Matt Gaetz, Louie Gohmert, and Marjorie Taylor Greene

Screenshot from RSBN

Reprinted with permission from Alternet

Reps. Matt Gaetz (R-FL), Louie Gohmert (R-TX), and Marjorie Taylor Greene (R-GA) staged a press conference immediately after being denied entry to a District of Columbia corrections facility allegedly holding defendants who face charges related to the January 6 insurrection.

Keep reading... Show less
x

Close