News / Economy

US Economy Shrinks More Than Expected

A sign sits in front of a new home for sale in West Des Moines, May 21, 2014, Iowa.
A sign sits in front of a new home for sale in West Des Moines, May 21, 2014, Iowa.
VOA News

The U.S. economy shrank more than first thought at the beginning of this year.

Wednesday's report from the Commerce Department says the economy shrank at a 2.9 percent annual pace in January, February, and March.

That is much worse than earlier estimates, and the worst economic growth figures in five years.  U.S. officials routinely revise economic estimates as new, more complete data becomes available.


Economists blame the slowdown on unusually foul winter weather, and many predict the problem will be temporary.

US GDP first quarter contractionUS GDP first quarter contraction
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US GDP first quarter contraction
US GDP first quarter contraction

A top White House economic advisor, Jason Furman, says data from April and May show the economy is on track to resume growing soon. 

However, a second economic study published Wednesday, went against that trend, showing orders for long-lasting manufactured goods unexpectedly fell in May.

 

 

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Comments
     
by: Ian from: USA
June 26, 2014 10:41 AM
If you think the Emma Mærsk is big , watch out for the largest Mærsk line container ship. The 1,200 feet 'Triple-E' class behemoth will carry 18,000 TEU containers, 2500 more than the current largest . With that much of Walmart Chinese products reaching California in 5 day trips across the ocean , the US economy will shrink even more .Try your best to buy US goods so your neighbors , your friends and your relatives can hold on to their jobs


by: andre from: bogota
June 26, 2014 8:43 AM
I think that the economy will down every year I wont negativa abput that,but every year is different is down.

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