Twitter icon Email alerts icon Latest News RSS icon Magazine icon Stay connected:

View the article online at

US GDP slumped to 2.9% loss in Q1

by David Campbell on Jun 25, 2014 at 13:56

US GDP slumped to 2.9% loss in Q1

US GDP fell 2.9% in the first quarter as the economy slumped much deeper than earlier believed, sharply lower than the previous estimate of -1%, as the country shivered under a severe winter.

More recent data has appeared to show a sharp snap back in growth in Q2, but the drop makes the earlier consensus 3% full-year growth figure for 2014 a distant prospect.

The range of the revision was the biggest in comparable records going back to 1976, said the US Commerce Department.  

‘While the blip shouldn’t be taken as an indication of underlying weakness in the economy, it has impacted monetary policy,’ said Nancy Curtin, chief investment officer at Close Bros.  

‘Given the sheer scale of the weather-related slowdown, Yellen hasn’t really had the option to change policy in recent months.

‘In the context, any move away either away from tapering or towards tightening would have rung alarm bells for investors, and this won’t change until data has been consistently on trend.’

leave a comment

Please sign in here or register here to comment. It is free to register and only takes a minute or two.

News sponsored by:

Sponsored Video: Bringing it all back home

As the UK coalition government strives to rebalance the national economy, so called 'reshoring' looks set to play an increasingly important role in economic recovery.

Today's top headlines

Investing for income in a changing environment

With talk on interest rates on the horizon, our latest roundtable debate covers income investing against a changing backdrop

More about this:


On the road

Click here to find out more from the Audience Development team.

Sorry, this link is not
quite ready yet