First Quarter GDP fell by 6.1%, much worse than expected. This comes after the final numbers for Fourth Quarter GDP was down -6.3%, the worst quarter since Q1 1982 when economic "growth" was -6.4%. Estimates for the quarter were expecting a drop better than -5%. This is the first streak of three negative quarters since Q1 1975.
Here is a breakdown of where the economy is shrinking, and growing, most.
- Gross Domestic Product: -6.1%
- Personal Consumption: +2.2%
- Durable Goods: +9.5%
- Nondurable Goods: +1.3%
- Services: +1.5% (Driven by a 20% increase in Electric & Gas use)
- Private Investment: -51.8%
- Net Exports:
- Exports: -30.0%
- Imports: -34.1%
- Government Consumption: -3.9%
- Federal: -4.0%
- State & Local: -3.9%
Despite the negative numbers the futures remained positive on the news, as consumer spending numbers (roughly 70% of the economy) were up more than double analysts' estimates. Leading the Dow in the premarkets are Bank of America , General Motors , JP Morgan Chase , Alcoa and General Electric .
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