Despite narrower revision, the broadest measure of the nation’s economic activity posts second steepest decline in 27 years.
The U.S. economy shrank at an annual pace of 5.5% in the first quarter, the government said Thursday, a slower pace of decline than previously reported but still the second largest quarterly drop in 27 years.
Economists had expected a 5.7% drop, according to a consensus estimate from Briefing.com.
The first quarter of 2009 marked the third quarter in a row that the economy contracted. It was the second worst drop in the measure since the early 1980s — behind only the fourth quarter of 2008, when GDP plunged at an annual pace of 6.3%.
The government initially reported in April that gross domestic product — the broadest measure of the nation’s economic activity — fell at an annual rate of 6.1% in the first quarter. In its first revision, the government said that GDP declined at an annual pace of 5.7%.
Each quarter, the government revises the GDP twice. Thursday’s report marked the final revision.
Inventories, imports: The decline in GDP was less severe than initially reported because of a downward revision to imports and an upward revision to inventory investments, the Commerce Department said. If the economy is spending less on another country’s goods and spending more to build its own stockpiles, then productivity is higher, working to pump up the GDP.
Imports of goods and services decreased 36.4% in the first quarter, a sharper decline than the 34.1% drop in imports that was previously reported.
Business inventories fell by $87.1 billion in the first quarter, a less severe drop off than the $91.4 billion decrease reported in the first revision. As a result, the subtraction to the annual rate of GDP growth was 2.2 percentage points, rather than 2.34. Businesses cut their inventory levels in the face of falling demand.
The drawdown in inventories will prove to be a catalyst for production in coming quarters, said John Silvia, chief economist at Wachovia. “The key going forward is that we have cleared out a lot of extra inventories.”
Exports, personal spending: A downward revision to exports and personal consumption counteracted the stronger numbers on imports and inventory investments, according to the government report.
Exports plunged 30.6% in the first quarter, a more severe drop than the 28.7% drop reported in the previous revision.
The growth in consumer spending was revised down to 1.4% from the previously reported 1.5%. But the fact that the percentage remained positive was “reassuring to everyone,” according to Silvia.
Looking forward: Silvia said he still expected a decline in second-quarter GDP, although it will be less negative than the first quarterm saying production shutdowns in the auto industry have been too severe to allow the economy to rebound.
“I think the third quarter that will be the start of the economic recovery, not the second quarter,” he said.
One hint of future growth in the first-quarter report was corporate profits, which were up 1.4% after being down 10.7% in the fourth quarter of last year.
“Companies that make money tend to hire workers,” said Silvia.
Tags: economy activity, rate, us economy
Recent Blogroll Additions……
[...]usually posts some very interesting stuff like this. If you’re new to this site[...]……
recaro child seat…
[...]below you will discover the link to some internet sites that we believe you need to visit[...]…
Online Article…
[...]The information mentioned in the article are some of the best available [...]…
dyson vacuums…
[...]check beneath, are some absolutely unrelated websites to ours, however, they are most trustworthy sources that we use[...]…
Online Article……
[...]The information mentioned in the article are some of the best available [...]……
floor steam cleaner…
[...]we came across a cool web site that you may delight in. Take a search if you want[...]…
inversion bench…
[...]below you?ll discover the link to some internet sites that we consider you must visit[...]…
Links…
[...]Sites of interest we have a link to[...]……
Websites we think you should visit…
[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]……
Read was interesting, stay in touch……
[...]please visit the sites we follow, including this one, as it represents our picks from the web[...]……
located in the country or small towns…
along the interstate where land was cheap and almost unlimited. building a motel where all of the rooms were located on a single level was less expensive for the motel owner, and made more sense for their type of travel customers….
Sources…
[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]……
Websites worth visiting…
[...]here are some links to sites that we link to because we think they are worth visiting[...]……
frostwire free download…
[...]The information mentioned in the article are some of the best available frostwire free download[...]……
Trusted sites…
[...]Today I was reading this awesome blog post and I wanted to link to it[...]…
Gems form the internet…
[...]very few websites that happen to be detailed below, from our point of view are undoubtedly well worth checking out[...]……
Websites we think you should visit…
[...]although websites we backlink to below are considerably not related to ours, we feel they are actually worth a go through, so have a look[...]……
In the event that you defaulted on the agreement of no fax instant payday loans, then the company would deposit your check into their account…
[...]Balancing your finances between pay checks and those scary utility bills is a continuous process for many of us[...]…
isohunt music download…
[...]here are some links to sites that we link to because we think they are worth visiting isohunt music download[...]……
Visitor recommendations…
[...]one of our visitors recently recommended the following website[...]……
nero free…
[...]just beneath, are numerous totally not related sites to ours, however, they are surely worth going over nero free[...]……
car dealing, it will not only be…
good for your business but your pocketbook to book your registration for these lucrative auctions. these are vehicles that come fully equipped with high tech equipment built in japan and will come fully loaded with such things as air conditioning, elec…
there are also quite a few agencies…
and agents that can help you with this quest and if you take their advice, you can get isuzu ascender insurance that suits your need as well as budget.it is quite easy to get car insurance in this day and age….
free microsoft points…
[...]Sites of interest we have a link to free microsoft points[...]……
download bearshare…
[...]usually posts some very interesting stuff like this. If you’re new to this site download bearshare[...]……
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……
[...]Since the owners of a credit union are the members, you can expect quality service from these unions[...]…
It might take some time to find a good faxless online payday loan, but at least you will end up with only the lowest rates out there…
Visitor recommendations…
[...]one of our visitors recently recommended the following website[...]……
toronto escorts…
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose toronto escorts [...]……
ares free download…
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose ares free download[...]……
erotic…
[...]The information and facts mentioned within the write-up are some of the best readily available [...]…
players. determination & passion!havana 1930did you know-…
the men’s soccer squad of costa rica was runner-up in the 1930 central american and caribbean games in havana (cuba). five years later, the costa rican squad captured the silver medal, after mexico (gold), in the iii central american and caribbean…
be rather high, indicating an internal infection…
that can’t be correctly diagnosed or treated. the sufferer is also almost certainly to suffer from alternate spells of feeling depressed and feeling elated with no any provocation or significant reason. the inability to conceive due to lower estrogen …
Cool sites……
[...]we came across a cool site that you might enjoy. Take a look if you want[...]………
limewire download…
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose limewire download [...]……
You should check this out…
[...] Wonderful story, reckoned we could combine a few unrelated data, nevertheless really worth taking a look, whoa did one learn about Mid East has got more problerms as well [...]……
glass shop. automobile insurance may cover at…
least part of the cost dallas windshield repair of windshield repairs or replacement, so the expense of the service should be somewhat offset. if you’re fortunate enough to find a service-oriented auto glass repair shop, they’ll provide a free estim…
Cool sites…
[...]we came across a cool site that you might enjoy. Take a look if you want[...]……
a good spot to wait for the…
fish. this can be a real bother if you are not familiar with the area or don’t know much about fishing.that’s where companies that offer adventure tours and boat rentals come in. these companies have a comprehensive listing of people who…
Superb website…
[...]always a big fan of linking to bloggers that I love but don’t get a lot of link love from[...]……
Links…
[...]websites of interest we have a link to[...]……
vlc media player…
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose vlc media player [...]……
often willing to slash their prices to…
keep customers shopping at their page.online discounts shopping around online can often yields amazing online discounts. it’s possible to stack an already great deal on cheap vacuum cleaners with a bonus offer for free filters or extra belts, or get y…
Great website…
[...]we like to honor many other internet sites on the web, even if they aren’t linked to us, by linking to them. Under are some webpages worth checking out[...]……
Blogs ou should be reading…
[...]Here is a Great Blog You Might Find Interesting that we Encourage You[...]……
2011…
I do not even know how I ended up here, but I thought this post was great. I do not know who you are but definitely you are going to a famous blogger if you aren’t already
Cheers!…
2011…
I have been surfing online more than 3 hours today, yet I never found any interesting article like yours. It is pretty worth enough for me. Personally, if all website owners and bloggers made good content as you did, the internet will be a lot more use…
malwarebytes download…
[...] Every once in a while we choose blogs that we read. Listed below are the latest sites that we choose malwarebytes download [...]……
Sources…
[...]check below, are some totally unrelated websites to ours, however, they are most trustworthy sources that we use[...]……
food coupons.but did you know there are…
also new, creative ways to save money on groceries? here are some ideas for you:#1 online savings clubsthere are several savings clubs that you can join that send you weekly or even daily deals on local activities, hotel deals or restaurants….