Posted
May 29 2009, 12:40 PM
by
Minyanville
The big economic piece for Friday was U.S. gross domestic product. The Financial Times reports the U.S. economy continued to contract in the first quarter of 2009, yet improvements in specific categories did boost investor sentiment.
Preliminary estimates by the Bureau of Economic Analysis released Friday suggested that the nation’s GDP fell at an annualized rate of 5.7% in the first quarter. Although this was more than expectations of a 5.5% decline, it was still better than the previous month’s estimate of a 6.1% drop and far better than the fourth quarter where GDP fell at a 6.3% rate, the sharpest since 1982.
Notable improvements were in corporate profits, which rose 3.4% to $1.3 trillion. This follows a 16.5% decline in the fourth quarter. The improvement was mainly due to the financial sector, where income surged 95% as banks cut costs by laying off workers and were able to borrow from the government at very low rates.
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