U.S. economy suffers worst performance for five years

U.S. economy suffers worst performance for five years

PanARMENIAN.Net - The U.S. economy suffered its worst performance for five years in the first quarter of 2014, latest figures show, according to BBC News.

The economy shrank at an annualized rate of 2.9% in the first three months of the year, the third estimate from the U.S. Commerce Department showed.

This was worse than the previous estimate of a 1% contraction, and also worse than economists' expectations for a fall in GDP of 1.7%.

The unusually cold weather in the quarter has been blamed for the fall.

The gap between the second and third estimates of U.S. growth for the quarter is the largest on record.

The latest revision came as a result of a weaker pace of healthcare spending than previously assumed, which caused a downgrading of the consumer spending estimate.

Trade was also a bigger drag on the economy than previously thought.

Despite the worse-than-expected figures, more recent unemployment, manufacturing and service sector data all point to a sharp turnaround in the second quarter.

 Top stories
Iran’s Alireza Kameli said that an average of one million cubic meters of natural gas is currently being exported to Armenia.
According to Minister Yervand Zakharyan, about $220 million will be invested in the project; the agreement will be signed within four months.
Maufacturing of tobacco products increased by 49.1% to AMD 94 bn, with production of jewelry also climbing 61% to AMD 18 bn.
Net inflow of remittances to Armenia in the reporting period amounted to approximately $891,4 million, down by 35.8% remitted in 2014.
Partner news