During the summer months of 2014, U.S. economic output climbed at an annual rate of 5%.
This percentage rise boosted the confidence of economic forecasters. Some of them predicted a sustained 3% growth rate for the U.S. economy going forward.
But the economy took a step backwards in Q1 of 2015.
Read this excerpt from a May 29 Washington Post article:
The U.S. economy shrank at an annualized pace of 0.7 percent in the first three months of the year, according to government data released Friday morning, a tumble for a recovering nation that until recently seemed poised for takeoff.
The contraction, the country’s third in the aftermath of the Great Recession, provides a troubling picture of an economy that many figured would get a lift from cheap oil, rapid hiring and growing consumer confidence. Instead, consumers have proved cautious, and oil companies have frozen investment — all while a nasty winter caused havoc for transportation and construction and a strong dollar widened the trade deficit.
The numbers released Friday were a revision of earlier figures that had shown GDP growing in the first quarter at 0.2 percent. Markets had since expected the downward revision, in large part because of recent data showing the trade deficit at a 6½-year high.
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