Contrary to early reports, the American economy shrank drastically in the first quarter by 2.9 percent. This is a far more alarming picture than the ones first painted that showed a slight growth.
The newest revision on Wednesday by the Commerce Department is nearly three times lower than the preliminary estimates — the worst quarter since the economic woes of 2009.
Fox News contributor and economist Peter Morici said that there are a few factors that can downplay the lackluster performance. But he also said there are some areas of concern.
“Business scaled back their investment, and that is a bit foreboding,” said Morici. “They just don’t believe the president’s ballyhoo about this being a breakout year.”
“It’s clear the White House doesn’t know which way is up, just two months ago bragging that ObamaCare was helping the economy; and now we’re seeing the worst economic report since the low point of the recession in 2009,” said RNC Chairman Reince Priebus. “The Republican House has sent Harry Reid and Democrats in the Senate dozens of bill to help jump-start our economy, and it’s time they stop standing in the way.”
According to The Wall Street Journal, Macroeconomic Advisers recently forecast that the economy will grow at a 3.6 percent annual rate in the April to June period.
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