Initial estimates of positive economic growth in the first quarter of 2015 have now turned negative.
The U.S. economy actually shrank in the first quarter of 2015 as real gross domestic product (GDP) declined at an annual rate of 0.7 percent, according to the Obama administration’s second look at the numbers.
The 0.7 percent decline in first-quarter real GDP was revised from the previously reported gain of 0.2 percent, which was the advance estimate put out at the end of April by the Commerce Department and the Bureau of Economic Analysis (BEA). Real GDP is adjusted for inflation and represents the value of the production of goods and services in the United States.
Real GDP of -0.7 percent in the first (January-March) quarter was lower than the real GDP estimate of 2.2 percent in the fourth (October-December) quarter of 2014. It was also lower than the third quarter 2014 estimate of 5.0 percent.