The final accounting on the 1st quarter for the economy is in and it is not pretty. As Jeanna Smialek of Bloomberg reports:
Gross domestic product fell at a 2.9 percent annualized rate, more than forecast and the worst reading since the same three months in 2009, after a previously reported 1 percent drop, the Commerce Department said today in Washington. It marked the biggest downward revision from the agency’s second GDP estimate since records began in 1976, owed primarily to a slowdown in health care spending.
The slowdown – not to say “plunge” – in economic activity is widely blamed on the weather. We all knew it was cold but not that cold.
Still, with the storms of winter behind us, the recovery can resume.
With much to recover from.