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

Published 04/29/2020, 08:56 AM
Updated 04/29/2020, 09:02 AM
© 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.

 

 

 

Latest comments

Well, DUH!
Why Market go up?
Because they had been oversold to levels corresponding to covid being something like bubonic plague.
lol
because is where wall street wants it to go
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.
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...
Blame him for what - the virus?
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.
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...
So, that's the narrative you're trying to sell? You need to get back to your knee-jerk - storming session.
Looking at the market. "Like it never even happened ".
Markets have gone crazy ... millions are unemployed. And many are still not registered. Not turning around anytime fast.
Bot, with 5 bot up-votes.
#WhoCares
Next we destroy China!
New All time highs coming. #MAGA
and the market is up 400 plus points. yeah doesnt matter what negativity comes out folks.
Trump out does Obama again with worst GDP growth, way to make America great again you looser.
yeah, Trump sneaked the virus into China so the economy would tank - a sure fire way to get re-elected.
-4.8% , the SP500 should be up around 3200
I agree. To bad it doesn’t -12% than SP500 should be up around 5000
🤣
It's a miracle due to un injection of disinfectant
only if you inject american disinfectant, don't use chinese products because you can't trust them commie atheists
I an so afraid for whole world what we will going to see in data for Q2.
Does it matter whst data is... bad data market goes up... good data it goes up more🤷🏻‍♂️
I agree with You but I mean for real world what would happen not for fake market. That will be disaster
i'm telling you only nuke war better than corona virus for these guys
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
For a flue and few elder deads they doomed all humanity to starve to dead. Good job!
"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
yeah... right now, wait a couple of weeks or a month
 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....
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...
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.
 I understand, and I understand your need for urgency, but this past quarter could not have possibly grown by 4%.
 i just upset. lol.
 Lol.  We're all upset.  Lets make some money during this volatile time.
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