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The US economy shrank much more than previously estimated in the first quarter, in the sharpest contraction in five years, the Commerce Department said today.
Gross domestic product fell at a 2.9% annual pace in the first three months of the year, much worse than the previous estimate of 1%.
It was the steepest contraction since the 2009 first quarter, when GDP plunged 5.4% during the deep recession spawned by the 2008 financial crisis.
The Commerce Department said figures showed weaker growth in consumer spending, a larger increase in exports and higher imports than previous estimates.
The economy was hit by unusually severe winter weather in much of the country at the beginning of the year, after growth of 2.6% in the 2013 fourth quarter.
But the weak first quarter did not suggest that the US is slipping into recession, technically defined as two consecutive quarters of GDP contraction, as second-quarter data has shown the economy rebounding.
The Federal Reserve has shrugged off the weak first quarter as largely weather-related. In June the Fed cut, for the fifth time in a row, $10bn from its economic stimulus program, bringing it to $35bn a month.
Jim O’Sullivan, chief US economist at High Frequency Economics, called the first-quarter report “an outlier”.
“If anything, labor market indicators and business surveys are suggesting a net pick-up in the trend so far this year. We expect at least partial payback with a strong 4.0% rate of growth in Q2,” he said.
European stock markets fell today, with losses accelerating after the US figures were reported.
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Can I have my money back now
It’s like’…..burning your furniture – to keep warm!
Why are PwC saying this instead of IBRC and NAMA?
As property prices start to rise nama , ibrc start to dump property
Can someone explain why?
Dumping loans philip, not property. They’re Dumping the loans as they’re non-performing and want to get them off the balance sheet.
If they had the patience, they’d put arrangements in place to allow the properties to return to positive equity and then seek a sale, this recouping more of the tax payers money.
Unfortunately, they’ll sell the loans for a discount and allow the new purchasers to do this and net a tidy profit.
The article outlines that IBRC (IBROKE would probably be a better name) will offload € 15 billion in loans.
Yet the linked article tells us that IBROKE have already offloaded 90% of its loanbook, € 19.8 billion out of € 21.7 billion leaving just € 1.9 billion on hand.
This can only mean, if the previous article is correct, that it is NAMA that is offloading the majority of the loans.
Why the subterfuge?
Why make people think that this is some kind of joint enterprise when it is NAMA that is leading the charge?
Have the shiny suit brigade from the canal something to hide?
Given their obsession with secrecy it would not surprise me if they have, perhaps selling the loans to some preferred customer with an inside track at a serious discount.
The way things go it will all be wrapped up before we know anything, plus ça change.
Who in their right mind would buy this junk?
It might only be worth 30% of face value but if you buy it for 20% it’s a good deal. For the buyer anyway.
@ Irish Revolution
The Banks?
Hedge funds bought it. They will now sell off all the ghost estates etc at a lower price so people that have houses for sale at the min will eventually have to sell for half or take them off the market.
Fab house here in drogheda asking price €325. Hilarious. You could now nearly get a house for that on raglan road or ailsbury road!! So that house is realistically worth less than €150 really.
People and notions ha
What about Bank of Scotland selling on my mortgage & others in their Irish portfolio to a company called Tanager Ltd.
I’m in a tizzy all day because I don’t know what it means for us.
have your say