U.S. Economy Shrinks 2.9 Percent

Wednesday, June 25, 2014

U.S. President Barack Obama speaks about the about progress in the economy since the financial crises that happened five years ago, in the Rose Garden at the White House on September 16, 2013. (Mark Wilson/Getty)

Today, things are not looking great for the U.S. economy, which shrank 2.9 percent in the first quarter of 2014—the worst showing in the last five years.

This is the third estimate from the U.S. Commerce Department and it's at odds with their previous estimate of a 1 percent contraction. There may still be some hope—many reports show that the economy is expected to bounce back during the second quarter.

Charlie Herman, Business & Economic Editor for the Takeaway and WNYC, explains.

Guests:

Charlie Herman

Editors:

T.J. Raphael

Comments [1]

dlm

This news was only surprising to journalists and the economists they cover. Those of us who have been watching our gas, grocery, electric and heating bills rise with no corresponding raise in pay have been baffled by the continual reporting that the economy is doing well. This report is much more in sync with the realities we have been living.

Jun. 26 2014 07:27 AM

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