A Cold-Caused Contraction
8:41 AM, May 29, 2014 • By GEOFFREY NORMAN
The Commerce Department released revise first-quarter GDP numbers this morning. They were expected to show that the economy had actually shrunk a bit, instead of expanding by 0.1 percent as the initial report showed. The contraction was predicted to be somewhere around .5 percent. And while this was not something to be celebrated, it could be written off as the consequence of a particularly harsh winter. Climate change strikes again.
Turns out the economy shrunk (first time for that since 2011) and by a full percentage point.
Must have been colder than we thought.Initial claims, meanwhile, declined.
A sign of spring, perhaps.
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