Economy Shrank 2.9% in Q1, News Boosts Gold Posted by Brian Ford on June 25, 2014
Newly released figures from the U.S. Commerce Department show that our economy did not, in fact, expand by 0.1% in the first quarter of this year. What’s more, the 1% contraction that was given as a correction to the April statement of GDP growth is wildly inaccurate, too. The current administration now says the U.S. economy retreated by 2.9% during the first four months of 2014, and analysts are now trying to figure out how government economists were so far off in their estimates.
“First-quarter GDP was revised down today, largely reflecting a re-estimation of consumer spending on health care…as well as exports,” said Jason Furman, chairman of President Obama’s Council of Economic Advisers. “The GDP data can be volatile from quarter to quarter; a range of other data show a more positive picture for the first quarter, and more up-to-date indicators from April and May suggest that the economy is on track for a rebound in the second quarter.”
Other optimistic economists blamed the “anomaly” of economic decline on the harsh winter experienced in the United States, but many market analysts have expressed skepticism that so much economic contraction could reasonably be blamed on bad weather. “Businesses scaled back their investment, and that is a bit foreboding,” said economist Peter Morici. “They just don’t believe the president’s ballyhoo about this being a breakout year. [The revised figure] really calls into question the accuracy of the measurement.”
As a result of the economy’s worst quarterly performance since 2009, the gold spot price climbed to $1,321.90 by Wednesday afternoon. For live and historic gold prices and a complimentary beginner’s guide to gold investing call the Certified Gold Exchange today at 800-300-0715 or request your free information below.