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U.S. Economy Shrunk by 4.8% in Q1, Worst Since 2008

Economic IndicatorsApr 29, 2020 09:02AM ET
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© Reuters.

By Geoffrey Smith 

Investing.com -- The U.S. economy shrunk by an annualized 4.8% in the first quarter of the year, the Bureau of Economic Analysis said on Wednesday, posting the first contraction since 2014 and the deepest since 2008. 

The numbers, which are likely to be revised substantially in subsequent estimates, were worse than the 4.0% expectations of analysts polled by Investing.com.

The decline was principally the result of a collapse in personal consumption, as companies started the process of laying off workers in response to mandated lockdowns across the country. Personal consumption contributed a negative 5.3 points to the headline figure. Business investment also took another 0.4 percentage point off the number as investment in equipment fell by over 15%, while inventories accounted for a drop of 0.5 percentage points.

 

 

 

U.S. Economy Shrunk by 4.8% in Q1, Worst Since 2008
 

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Comments (19)
Lysander Kutsara
Lysander Kutsara Apr 29, 2020 11:28AM ET
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Well, DUH!
Vivek Patil
Vivek Patil Apr 29, 2020 10:47AM ET
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Why Market go up?
Jáchym Vaněček
Jáchym Vaněček Apr 29, 2020 10:47AM ET
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Because they had been oversold to levels corresponding to covid being something like bubonic plague.
Darlington Anikwenwa
Darlington Anikwenwa Apr 29, 2020 10:47AM ET
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Darlington Anikwenwa
Darlington Anikwenwa Apr 29, 2020 10:47AM ET
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Jáchym Vaněček because is where wall street wants it to go
Benjamin Tallman
Benjamin Tallman Apr 29, 2020 10:37AM ET
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My only concern is this suckers rally is just a chance for billies in big funds to bring up their hedges to take the lunch money from retail pushing in on optimism over lackluster news and inability to forecast.
Tre Hsi
Tre Hsi Apr 29, 2020 10:37AM ET
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President Orange Hair will always blame someone else, I don't think even he can realistically blame Obama or muslims or Mexico for this, but there is still China, WHO, Pelosi, he still have plenty of options...
Lysander Kutsara
Lysander Kutsara Apr 29, 2020 10:37AM ET
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Tre Hsi Blame him for what - the virus?
Thom Miller
Thom Miller Apr 29, 2020 10:28AM ET
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As I recall, Dr Donny promised us +4% or maybe even +5% GDP growth during his administration. No way he was ever going to hit those numbers. But had he not totally botched the coronavirus threat and the economic shutdown, he might have been able to continue President Obama’s long stretch of strong gains. Now Dr Donny will blame everyone but himself for his dismal -4.8% nosedive. Sad.
Tre Hsi
Tre Hsi Apr 29, 2020 10:28AM ET
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The Donald will always blame someone else, I don't think even he can realistically blame Obama or muslims or Mexico for this, but there is still China, WHO, Pelosi, he still have plenty of options...
Lysander Kutsara
Lysander Kutsara Apr 29, 2020 10:28AM ET
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So, that's the narrative you're trying to sell? You need to get back to your knee-jerk - storming session.
John Klan
John Klan Apr 29, 2020 10:22AM ET
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Looking at the market. "Like it never even happened ".
RF RF
RF RF Apr 29, 2020 10:21AM ET
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Markets have gone crazy ... millions are unemployed. And many are still not registered. Not turning around anytime fast.
Lysander Kutsara
Lysander Kutsara Apr 29, 2020 10:21AM ET
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Bot, with 5 bot up-votes.
Canis Lupus
Canis_lupus Apr 29, 2020 9:58AM ET
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#WhoCares
Jime Jones
Jime Jones Apr 29, 2020 9:57AM ET
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Next we destroy China!
Jime Jones
Jime Jones Apr 29, 2020 9:56AM ET
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New All time highs coming. #MAGA
Matthew Carter
Matthew Carter Apr 29, 2020 9:55AM ET
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and the market is up 400 plus points. yeah doesnt matter what negativity comes out folks.
Me comment
Me comment Apr 29, 2020 9:49AM ET
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Trump out does Obama again with worst GDP growth, way to make America great again you looser.
Lysander Kutsara
Lysander Kutsara Apr 29, 2020 9:49AM ET
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yeah, Trump sneaked the virus into China so the economy would tank - a sure fire way to get re-elected.
Richie Berg
Richie Berg Apr 29, 2020 9:42AM ET
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-4.8% , the SP500 should be up around 3200
Get Sirius
Get Sirius Apr 29, 2020 9:42AM ET
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I agree. To bad it doesn’t -12% than SP500 should be up around 5000
RF RF
RF RF Apr 29, 2020 9:42AM ET
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Paolo Sarvia
Paolo Sarvia Apr 29, 2020 9:34AM ET
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It's a miracle due to un injection of disinfectant
Tre Hsi
Tre Hsi Apr 29, 2020 9:34AM ET
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only if you inject american disinfectant, don't use chinese products because you can't trust them commie atheists
Get Sirius
Get Sirius Apr 29, 2020 9:32AM ET
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I an so afraid for whole world what we will going to see in data for Q2.
Matthew Garofalo
Matthew Garofalo Apr 29, 2020 9:32AM ET
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Does it matter whst data is... bad data market goes up... good data it goes up more🤷🏻‍♂️
Get Sirius
Get Sirius Apr 29, 2020 9:32AM ET
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Matthew Garofalo I agree with You but I mean for real world what would happen not for fake market. That will be disaster
perplexed76 .
perplexed76 . Apr 29, 2020 9:20AM ET
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i'm telling you only nuke war better than corona virus for these guys
Archie Goldstern
Archie Goldstern Apr 29, 2020 9:19AM ET
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Pervert stock buying.. The outlook is miserable and I'm sure all the V-mates here will get their bad surprise in a few weeks when we see further massive crashs
Rodolfo Barraco
Rodolfo Barraco Apr 29, 2020 9:17AM ET
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For a flue and few elder deads they doomed all humanity to starve to dead. Good job!
Tre Hsi
Tre Hsi Apr 29, 2020 9:17AM ET
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"they doomed all humanity to starve to dead."......are you starved to death?  I just had a big lunch at home, I look around my neighborhood and most people are gaining weight so clearly not all humanity are starving to death
Ciro Lazio
Ciro Lazio Apr 29, 2020 9:17AM ET
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yeah... right now, wait a couple of weeks or a month
Tre Hsi
Tre Hsi Apr 29, 2020 9:17AM ET
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Ciro Lazio  why would a couple of weeks change anything?  in fact the way things are going you would have even more food options in a month or two, as more places reopening....
Pavan Vulli
Pavan Vulli Apr 29, 2020 9:15AM ET
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Very soon we will have half the population in US has lost jobs 10% dead, that will ne the day to buy stocks gor 30% upside in a day... n st this rate Dow will hit 100 thpusand by the end of this year...
Christian Wibowo
Christian Wibowo Apr 29, 2020 9:07AM ET
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your information is misleading. it was more than 4 percent when you sent it to my phone then it changed to -4? i closed my position ended got a little profit.this actually can make me get a huge profit.
Show previous replies (1)
Christian Wibowo
Christian Wibowo Apr 29, 2020 9:07AM ET
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Eric Chen  i sense something wrong, but again, im in floating profit position. better closed it than if the market turn i get loss.
Christian Wibowo
Christian Wibowo Apr 29, 2020 9:07AM ET
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and now look, the market continue to buliish. *******
Eric Chen
Eric Chen Apr 29, 2020 9:07AM ET
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Christian Wibowo  I understand, and I understand your need for urgency, but this past quarter could not have possibly grown by 4%.
Christian Wibowo
Christian Wibowo Apr 29, 2020 9:07AM ET
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Eric Chen  i just upset. lol.
Eric Chen
Eric Chen Apr 29, 2020 9:07AM ET
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Christian Wibowo  Lol.  We're all upset.  Lets make some money during this volatile time.
 
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