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FRIDAY, NOVEMBER 27, 2009
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5

Economy Shrinks Faster Than Expected in 1st Quarter

6.1% pace fueled by biz cutbacks, export drop

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(AP) – The US economy shrank at a worse-than-expected 6.1% pace at the start of this year as sharp cutbacks by businesses and the biggest drop in US exports in 40 years overwhelmed a rebound in consumer spending. Today's Commerce Department report dashed hopes that the recession's grip on the country loosened in the first quarter. Economists surveyed by Thomson Reuters had expected a 5% annualized decline.

Instead, the economy ended up performing nearly as badly as it had in the final three months of last year, when it logged the worst slide in a quarter-century, contracting at a 6.3% pace. The first-quarter consumer rebound, the strongest in 2 years, was swamped by heavy spending cuts in virtually every other area.

In this April 17, 2009 file photo, Commerce Secretary Gary Locke speaks at the University of Arkansas-Little Rock in Little Rock, Ark.
In this April 17, 2009 file photo, Commerce Secretary Gary Locke speaks at the University of Arkansas-Little Rock in Little Rock, Ark.   (AP Photo/Danny Johnston)
A lot with a scenic view is posted for sale in the Mt. Adams neighborhood of Cincinnati. The U.S. economy shrank at a worse-than-expected 6.1 percent pace at the start of this year.
A lot with a scenic view is posted for sale in the Mt. Adams neighborhood of Cincinnati. The U.S. economy shrank at a worse-than-expected 6.1 percent pace at the start of this year.   (AP Photo/Al Behrman)
A shopper braves cold weather on Michigan Ave. Tuesday, April 28, 2009, in Chicago.
A shopper braves cold weather on Michigan Ave. Tuesday, April 28, 2009, in Chicago.   (AP Photo/M. Spencer Green)
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5 comments
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Timinator2K
Apr 29, 09 8:18 AM CDT
I thought the messiah's first 100 Days of Glory cured all these ills? You mean they didn't? Make up your minds Main Stream Media schizos! Reply
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-4
IN RESPONSE:
Robert_Dada
Apr 29, 09 10:31 AM CDT
So you expected a turnaround of this mess in about 3 months? Glad you have no role in the recovery process.
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+1
IN RESPONSE:
Snowleopard
Apr 29, 09 3:00 PM CDT
no, the economy is still very sick, and the stimulus money is just beginning to be spent. Meanwhile, money continues to be sucked out of the lower and middle classes and siphoned upwards towards the elite, where it is horded away from the real economy (main-street)... and so the economic contraction continues. The only way to fix this cycle is to get money back into the hands of the people who need it. Currently 10% of the population owns 80-90% of the wealth, while the bottom half owns less than 1%. This is the root of the crisis - the extreme financial equality within this country. We need to return to the highly progressive tax code of the 50s and 60s, the most prosperous time in the history of this country.
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+1
Corona_Kinq
Apr 29, 09 8:53 AM CDT
It's funny, the only people who call him the messiah are right wingers. Strange isn't it. Reply
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+5
SPH
Apr 30, 09 12:31 PM CDT
Timinator2K comments are funny....... Reply
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