GDP Shocker: US Economic Growth Crashes To Just 0.1% In Q1

Tyler Durden's picture

Despite consensus at 1.2% growth QoQ, the "weather" destroyed the fragile stimulus-led economy of the US which managed only a de minimus +0.1% QoQ growth (the lowest since Q1 2011). However, as Steve Liesman noted on the heels of Mark Zandi's comments "basically ignore this number" - ok then. Spending on Services, however, surged by the most since 2000 - heralded as great news by some talking heads - but is merely a reflection of the surge in healthcare and heating costs (imagine if it had not been cold and if Obamacare hadn't saved us). As a reminder - this is the growth that is occurring as QE has run its course, as stimulus ends, and as escape velocity nears... if the "weather" can do this much damage to the US economy, should stocks really be trading at the multiple of exuberant future hope that they are?




The full breakdown of GDP components:

And here's what everyone's favorite economist, who was off only by around 1900%, thought:



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Grande Tetons's picture

Bearish hockey sticks. 

Murf_DaSurf's picture





No worries, World War III will bump up the number by the end of the year.

Gene Parmesan's picture

Gotta start pushing sentiment and expectations toward desperation sooner or later.

sodbuster's picture

In the old days before Fraud Street was totally rigged, we would be down over 200 pts on news like this. Not anymore!! We'll be up 150 by the end of the session.

Xibalba's picture

Who knew that lousy weather could have such an impact on exports.

ArkansasAngie's picture

The dad gum Ruskies aren't doing their part and buying American.  

old naughty's picture

Ask Yellen and her newly approved vice-chair if they have any new tricks?

tmosley's picture

Well thank Obama for broken windows.

SamuelMaverick's picture

Truthseeker, that link was crap. If you or yours want to use the word capitalism ( in any form) , go learn what it is. I have not seen it in the USA in my lifetime. 


THX 1178's picture

So when does the recession become official? When some extremely-smart academic functionary in a suit and tie says so? 

Xibalba's picture

When policy makers don't get what they want, they'll allow/orchestrate a know, to teach you a lesson.

THX 1178's picture

Hmm... Luck for us THEY don't understand the cascading domino-like properties of this inextricably-linked emergently-complex HFT-algo-driven derivative-clogged world-o-finance we inhabit. One big sellofff and kaboom goes the dynamite.

I mean, The people in positions of power are too fucking stupid to understand the system, which alos means they are too stupid to know how to save it, or that it CAN'T be saved. So... good... I think.?.?.?.?.?

NidStyles's picture

Mark Thorton says it's a matter of comparing the Dow with the number of skyscrapers built. 

ejmoosa's picture

As soon as the Republicans get control of the Senate as well.

knukles's picture

Anyone but me note that consumption was still healthy and factors like exports, investment and government were the drags, the contractions?
The contractions are by and large, not weather related.

For Fucks Sake

Save_America1st's picture

simple solution:  REVISE IT! 

Then revise it again...and again...and again...and again...and again...and again...and again...

OC Sure's picture





 Counterfeiting is the fuel of tyranny.



Enforce Chapter 6, Section 19 of the Coinage Act of 1792.

Repeal the Coinage Acts of 1965, 1873, 1864, 1857, 1849, and 1834.

madcows's picture

I'd like to know why government spending is actually part of GDP.  They have to either tax the money or borrow the money.

pods's picture

And they are all hush hush on how expanding the money base fluffs the numbers.


BeerMe's picture

GDP or Government Debt Program

kellycriterion's picture

Now just imagine no tax evasion or avoidance. Where would consumption be?

SoilMyselfRotten's picture

US dollar gettin bitch-slapped

Rubbish's picture

Luuuuuucy !!!


Yes, Ricky...

Squid Viscous's picture

and the Dow futures are...GREEN! wtf??

lakecity55's picture

It certainly does appear to be falling like a rock.

ElvisDog's picture

World War III worries are silly. Before WW I and II the various countries had enormous standing armies ready to go. Today, the crack Ukranian soldiers have their weapons confiscated by a bunch of soccer moms and the NATO air force runs out of ammo after bombing Libya for 3 days. Can't compare the situations.

jay35's picture

With GDP growth that low, we're almost certainly going to war. :(

Headbanger's picture

Holy fuckashit! Holy fuckashit!

Was it something we said??

Looney's picture

0.1%!!! Winnnnning!

Charlie Sheen for Treasury Secretary! ;-)


Bangin7GramRocks's picture

Let's all get high and fuck!

Looney's picture

Is it OK to invite a few GIRLS for the "fucking"? ;-)


Bangin7GramRocks's picture

Sure thing. Whatever hole you prefer.

BandGap's picture

Hardly discernable from baseline noise.

Steve Liesman - ignore reality and press on.


Why are mining stocks hopping while PMs stagnate? Somebody knows something!

Keyser's picture

The shill, Steve LIESman is on CNBS beating the weather aspect of the poor GDP print... Who would have guessed?


Headbanger's picture

Would somebody please just whack that wanker already!!

DavidC's picture


What's sad is that, like Krugman, he probably BELIEVES the crap he comes out with.



Cpl Hicks's picture

I know this is a cliche but his mug shot should be in the dictionary next to "smug".

Look that up in your Funk and Wagnall's!

Kilgore Trout's picture

Liesman is the spittle on Greenspan's lower lip.

Sudden Debt's picture


Bangin7GramRocks's picture

But somehow massive multinational companies that do business in dozens to hundreds of countries can match estimates to the fucking penny every quarter. And none of you feces flingers on Wall Street ever question the bullshit!

SAT 800's picture

Not, bad; not bad at all. Your English witticisms are improving.

Neethgie's picture


Sudden Debt's picture

That's what you say!

In both the mayority speaks spanish!

SAT 800's picture

Somebody had their Coffee this morning.