US first quarter GDP revised down to minus -2.9%

The US economy shrank -2.9% in the first quarter according to revised figures out yesterday. The fall was far larger than the figure of -1.8% expected by the market and reflected a bigger impact from the severe cold weather which hampered economic activity and private consumption in particular. The S&P500 equity index initially fell on the news but rebounded into positive territory as
The second quarter is expected to show a large rebound. Also, the GDP data is hard to reconcile with a broadly positive company earnings reporting season where 68% of earnings beat their forecasts and rose 6% overall.  If anything, the weaker GDP revision may also give the Federal Reserve pause for thought and possibly pushing back the point at which they may raise base rates.