The final assessment by the Commerce Department is in, and the growth rate for the first quarter of 2014 was in fact not a growth rate at all, rather, a contraction of 2.9 percent.
It’s the fastest rate of decline since 2009. Commerce had previously estimated a one percent retreat.
The cold weather explains some of this. But a little chilly air should not throw the U.S. economy for such a dramatic loop.
Things seem to be picking up, but it’s looking like the 2014 rate of growth might not even reach 2 percent.
The big culprit in the latest adjustment is consumer spending, which grew just 1 percent, less than previously thought. So let’s keep talking about income inequality, because destroying the job-making class is really going to put money in people’s pockets.
Meanwhile, President Obama today fired his economic team and called advisors who have departed back in for a tongue lashing.