U.S. Economy Contracted at 5.7% Rate in First Quarter

Recent Outbreaks Posted on

The U.S. economy shrank at a 5.7 percent annual pace in the first quarter, capping its worst six- month performance in five decades and reflecting declines in housing, inventories and business investment.

The contraction in gross domestic product was smaller than the government estimated last month, revised figures from the Commerce Department showed today in Washington. The drop was larger than economists had forecast, and followed a 6.3 percent tumble in the last three months of 2008.

The slowdown is forecast to ease this quarter, reflecting smaller declines in stockpiles of unsold goods and in construction, which may set the stage for a return to growth later this year. Still, companies are likely to continue cutting jobs as profits remain under pressure, causing consumers to limit spending and slowing any expansion.

“The decline in GDP will be much smaller in the second quarter and will move to positive in the third quarter,” said David Resier, chief economist at Nomura Securities International Inc. in New York, citing company inventories. “What we’ll see thereafter is not going to be particularly exciting.”

Stock-index futures, which had risen earlier in the day, remained higher after the report, while Treasuries were little changed. Contracts on the Standard & Poor’s 500 Stock Index were up 0.6 percent at 910.20 as of 8:45 a.m. in New York and yields on benchmark 10-year notes were at 3.6 percent.

Legal News Media

Legal News is the top headline legal news provider for lawyers and legalprofessionals. Read law articles and breaking news from law firm's across the United States to get the latest updates. We reserve the right, at our discretion, to change, modify, add, or remove portions of the site at any time. Your This site is solely for your personal use. You are, of course, welcome to print or otherwise copy material from this site for your personal use. However, you may not distribute, exchange, modify, sell or transmit anything you copy from this Site, including but not limited to any text, images, audio and video, for any business, commercial or public purpose. Any unauthorized use of the text, images, audio and video may violate copyright laws, trademark laws, the laws of privacy and publicity and civil and criminal statutes.


American Bar Association – Start and Run a Law Firm

NewYorkStateBar.com – Starting a Law Firm

Lawyer Website Designs