First Quarter GDP Contracts by 1.4 Percent over Q4, Surprising Economists

The loss follows a strong 6.9 percent gain last quarter and 5.7 percent for full year 2021.

Other than the short-lived drop in 2020 caused by the pandemic shutdown, negative GDP has not occurred since Q1 2014.
Positive factors included consumption, which grew by 1.8 percent, and investment, which edged up 0.4 percent.
Significant negative contributors were foreign trade, as imports jumped by 18 percent to $3.9 trillion while exports dropped by 6 percent to $2.4 trillion due to the US economy recovering more quickly than others.
Government spending also factored into the decline, off by 0.5% for the quarter.
Total investment rose, but the key component of business inventories fell due to continued supply chain issues.
Businesses have reduced construction of new buildings as well as improvement of existing ones since the fourth quarter of 2019.

“First quarter GDP unexpectedly contracts following a strong Q4.”