WASHINGTON – The U.S. economy went into reverse in the first three months of this year as a severe winter and a widening trade deficit took a harsher toll than initially estimated.
The Commerce Department says the overall economy as measured by the gross domestic product contracted at an annual rate of 0.7 percent in the January-March period.
The revised figure, even weaker than the government's initial estimate of a 0.2 percent growth rate, reflects a bigger trade gap and slower consumer spending.
It marked the first decline since a 2.1 percent contraction in the first three months of 2014, a slump that was also blamed on winter weather.
Economists expect a rebound in the current quarter to growth of around 2 percent and expect the economy to strengthen later this year.