Somehow Obama will manage to blame the GOP for this disaster.
The U.S. economy shrank at a steep annual rate of 2.9 percent in the January-March quarter as a harsh winter contributed to the biggest contraction since the depths of the recession five years ago. But the setback is expected to be temporary, with growth rebounding solidly since spring.
The Commerce Department says the first-quarter contraction was even more severe than the 1 percent annual decline it estimated a month ago. Two-thirds of the downward revision reflected a decline in health care spending. Another major factor was a bigger trade deficit than initially estimated.
So basically it was three times as bad as first reported, but let’s all pretend things will improve in the second quarter.
This is all so unexpected.
The final reading on U.S. gross domestic product doesn’t generally garner too much attention, but it could this time. Economists expect the rate of contraction to be revised down to 1.7% from an earlier estimate of 1%. This will be the first time GDP has fallen so much outside of a recession. Still, economists have broadly written off the weak first quarter due to harsh winter weather.
Sure, blame the weather. Can’t we just blame it on so-called climate change? Or perhaps there are other factors?
Q1 GDP shrank 2.9%, the worst ever recorded. Gee, I wonder what could account for it. #coughcoughObamacarecough
— David Burge (@iowahawkblog) June 25, 2014
Well, at least Obama makes history again:
— Brad Thor (@BradThor) June 25, 2014
Update: A cruel flashback:
Oh, the saddest of weeping, blubbering trombones: pic.twitter.com/CUfh03ogfp
— T. Becket Adams (@BecketAdams) June 25, 2014