Trivial revisions can't hide enormity of economic collapse

Rex Nutting
MarketWatch
June 25, 2009

WASHINGTON -- The U.S. economy just went through its worst two quarters in more than 60 years, as businesses reduced their investments at the fastest pace since the Depression, the Commerce Department reported Thursday as it revised its estimate for first-quarter gross domestic product.

Real GDP -- the measure of the value of goods and services produced in the economy -- fell at a 5.5% annual rate in the quarter after plunging at a 6.3% pace in the fourth quarter of 2008, the government said.

A month ago, the government had estimated GDP fell at a 5.7% pace in the January-through-March quarter. The government revises the estimates as it obtains more complete data not available earlier. Read the full government report.

Economists surveyed by MarketWatch were forecasting that the final estimate for first quarter GDP would be unchanged at a negative 5.7%. They expect the economy to contract 1.5% annualized in the second quarter (which ends next week) and to grow 1.3% in the quarter that begins July 1. See Economic Calendar.

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