From an earlier report of 6.1% GDP contraction, that number is now revised to a lower seasonally-adjusted rate of 5.7%, one that is still higher than the 5.5% economists had forecast. The economy contracted 6.3% in Q4 of ’08. That may well suggest the recession has hit bottom in late 2008.
The median forecast of 75 economists surveyed by Bloomberg News projected GDP, the sum of all goods and services produced, would shrink at a 5.5 percent pace. Estimates ranged from declines of 4.9 percent to 6.3 percent.
The same is reported by WSJ.
Among other things, cut in inventory declined less, trade contribution went higher, and so did the purchase of durable goods.
Companies trimmed stockpiles at a $91.4 billion annual rate last quarter, the biggest drop since records began in 1947. Still, the decline was smaller than the $103.7 billion estimated last month. Excluding the reduction, the economy would have contracted at a 3.4 percent pace.
And from WSJ:
Trade gave a bigger boost to the economy than first estimated. Exports were revised up, falling 28.7% instead of 30.0%. U.S. imports fell an unrevised 34.1%. Trade added 2.18 percentage points to GDP in the first quarter. Originally, Commerce had said trade added 1.99 percentage points to GDP.
But not all went up.
Federal government spending decreased by 4.3%, revised down from an initially estimated 4.0% decline. Fourth-quarter spending rose 7.0%. State and local government outlays dropped 2.9% in the fiirst quarter.