The U.S. economy has contracted 6.1 per cent in the first quarter as the U.S. Commerce Department’s latest report unveiled on Wednesday.
The drop in GDP comes despite rising consumer spending. The falling GDP figures over the past consecutive three quarters, hasn’t happened in 34 years, since third-quarter 1974 through first-quarter 1975.
The most shocking elements in the report include business investment, which dropped by a huge 38% at an annual rate.
Bad, bad and worse…
It was the second straight quarter the U.S. economy contracted by more than 6 percent. The fourth quarter of 2008 produced a 6.3 pecent decline – the biggest drop in 25 years.
The back-to-back bad quarters created the worst economy over a six-month period in 50 years, the commerce department said.
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