US first quarter GDP shrank 2.9%, 1% expected. US dollar sinks

by The Daily Lede

Real gross domestic product -- the output of goods and services produced by labor and property
located in the United States -- decreased at an annual rate of 2.9 percent in the first quarter of 2014
according to the "third" estimate released by the Bureau of Economic Analysis.  In the fourth quarter of
2013, real GDP increased 2.6 percent.
The GDP estimate released today is based on more complete source data than were available for
the "second" estimate issued last month.  In the second estimate, real GDP was estimated to have
decreased 1.0 percent.  With the third estimate for the first quarter, the increase in personal consumption
expenditures (PCE) was smaller than previously estimated, and the decline in exports was larger than
previously estimated (for more information, see "Revisions" on page 3).

      The decrease in real GDP in the first quarter primarily reflected negative contributions from
private inventory investment, exports, state and local government spending, nonresidential fixed
investment, and residential fixed investment that were partly offset by a positive contribution from PCE.
Imports, which are a subtraction in the calculation of GDP, increased.