Yesterday’s market weakness has been attributed to worse that expected economic numbers, particularly the extremely disappointing 0.2% GDP growth for the first quarter. This was much worse than the expected tepid growth of 1%.
Growth in the first quarter fell well short of expectations, with the economy barely managing to maintain any momentum at all. GDP in the three months ending March expanded at an annualized pace of 0.2% hugely missing an expected gain of 1.0% among economists surveyed by Bloomberg.
U.S. economic growth cooled in the fourth quarter as previously estimated, with businesses throttling back on inventory and equipment investment but robust consumer spending limiting the slowdown in the pace of activity.