Washington, May 29 (IANS): The US economy shrank at an annual rate of 0.7 percent in the first quarter of 2015, marking the third quarterly contraction after the financial crisis ended in mid-2009, according to the second estimate from the US Commerce Department released on Friday.
The Commerce Department estimated last month that the economy expanded 0.2 percent in the first quarter. The bitterly cold winter weather is blamed to pummel personal consumption and private inventory investment, dragging down growth to the negative territory, Xinhua news agency reported.
Personal consumption increased 1.8 percent in the first quarter, compared with an increase of 4.4 percent in the fourth quarter of 2014. Nonresidential fixed investment decreased 2.8 percent, in contrast to an increase of 4.7 percent in the previous quarter. Exports dived 7.6 percent, compared with an increase of 4.5 percent in the fourth quarter.