U.S. Gross Domestic Product (GDP) dropped significantly in the first quarter, surprising economists and demonstrating that the economy remains poor. The Commerce Department said Wednesday in its first estimate of first-quarter GDP Gross domestic product decreased at a seasonally adjusted 6.1 percent annual rate January through March despite rising consumer spending. Businesses dramatically slashed inventory and investments in housing dropped dramatically. These were the main drivers behind the poor numbers. According to the Wall Street Journal, “first-quarter GDP would have fallen farther if not for improvement in trade. Exports fell -- but imports dropped even more.” Economists had expected a drop of about 4 percent.
