Friday, May 29, 2015

Revisions to Q1 GDP show U.S. in negative growth as number falls to -.7%

When the initial GDP growth numbers came out at the end of April, the U.S. had achieved a barely positive result of just .2% for the first quarter of 2015.  But on May 29, the final revisions were announced and the market’s worst nightmare unfolded as revised GDP for Q1 was actually negative, and fell to -.7%.
Two consecutive quarters of negative growth are the determining factor for a recession, and with corporate revenues falling, and declines in consumer spending being the catalysts for the revised growth numbers, the probability that the U.S. is already in a slump is extremely likely, considering that the largest spending component over the past six months has been in the arena of healthcare premiums.


Post a Comment