Reportedly depressed by a severe winter and a widening trade deficit, the U.S. economy “shrank at a 0.7 percent annual rate in the first three months of the year.” The Associated Press,
The government’s revision for last quarter was weaker than its initial estimate of a 0.2 percent growth rate. The U.S. trade gap – the difference between the value of exports and the larger value of imports – was found to be wider than first estimated. And consumer spending was slower than previously thought…
Analysts generally foresee the economy, as measured by the gross domestic product, growing at an annual rate of 2 percent to 2.5 percent in the April-June quarter, with further strengthening later in the year. But risks remain: A stronger dollar, which makes U.S. exports more expensive, will likely continue to keep the trade deficit wide. And cutbacks in oil drilling, a result of low energy prices, could depress spending in the energy industry.
Leave a Reply