US GDP contracts at a rate of 2.9%

Not exactly news but quite incredible all the same:

The Commerce Department said on Wednesday gross domestic product fell at a 2.9 percent annual rate, the economy’s worst performance in five years, instead of the 1.0 percent pace it had reported last month.

I especially like the bit about the worst in five years. It has now contracted during a supposed recovery at the same rate as it did at the height of the GFC. And for those few remaining fans of a demand stimulus, let me just add this:

Consumer spending, which accounts for more than two-thirds of U.S. economic activity, increased at a 1.0 percent rate.

Usual Keynesian ignorance about the two-thirds of economic activity. But however much it contributes, the economy went backwards even though consumption grew.

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