Economy Shrank 1% in Q1 It's the first time since 2011—but it's temporary: economists By Arden Dier, Newser Staff Posted May 29, 2014 8:40 AM CDT 10 comments Comments Traders Mark Muller, left, and Luigi Muccitelli work on the floor of the New York Stock Exchange Tuesday, May 27, 2014. (AP Photo/Richard Drew) (Newser) – For the first time since 2011, the US economy shrank in the first quarter—by 1%. Economists expected a 0.5% drop, but tell the AP that the Q1 numbers had to do with the harsh winter. Thanks to stronger manufacturing, faster job growth, and more retail spending, the fall is only temporary, they say. "I wouldn’t worry too much about the decline, it’s mostly driven by less construction spending and less inventory accumulation. This quarter should be a good one," an economist tells Bloomberg, which notes the economy is expected to grow at a 3.5% rate in Q2.