Remember when in January 2014, Q1 GDP was expected to rise 2.0%? Well, here comes the final Q1 GDP revision and it’s a doozy: at -2.9%, far below the -1.8% expected and well below the -1.0% second revision, it is an absolute disaster, and is the worst print since Q1 2009.
And while a bad GDP print was largely expected, the driver wasn’t:
personal consumption expenditures somehow crashed from 3.1% to just
1.0%, far below the 2.4% expected, meaning that all hope of a consumer
recovery is dead. Finally, as a reminder, US GDP has never fallen more
than 1.5% except during or just before an NBER-defined recession since
quarterly GDP records began in 1947. Good luck department of truth
propaganda machine, because even assuming 3% growth every other quarter in 2014 means 2014 GDP will be 1.5% at best!
GDP long-term:
And GDP broken down by components:
For some context, this is a 6 standard deviation miss – as economists were striongly biased to the upside beat…
Do you believe in miracles?
Source: Dept of Commerce
via Zero Hedge http://ift.tt/1moMZMp Tyler Durden