Yikes: GDP Shrank to .7 Percent For First Quarter of 2015

Katie Pavlich
|
Posted: May 29, 2015 9:30 AM
Yikes: GDP Shrank to .7 Percent For First Quarter of 2015

Based on the latest GDP numbers, which were released today, the first quarter of 2015 was rough for the economy. New numbers show the economy shrank during the first months of the year, putting the GDP at an abysmal .7 percent. More from

AP
The U.S. economy went into reverse in the first three months of this year as a severe winter and a widening trade deficit took a harsher toll than initially estimated.

The overall economy as measured by the gross domestic product contracted at an annual rate of 0.7 percent in the January-March period, the Commerce Department reported Friday.

The revised figure, even weaker than the government's initial estimate of a 0.2 percent growth rate, reflects a bigger trade gap and slower consumer spending. It marked the first decline since a 2.1 percent contraction in the first three months of 2014, a slump that was also blamed on winter weather.

The silver lining

Economists expect a rebound in the current quarter to growth of around 2 percent and expect the economy to strengthen later this year.

Meanwhile, a record number of people aren't in the workforce.