U.S. Economy Shrinks

    NEW YORK, NY - FEBRUARY 28:  A trader works on the floor of the stock exchange during the afternoon of February 28, 2014 in New York City. The U.S. Commerce Department revised its fourth quarter 2013 gross domestic product (GDP) report yesterday to 2.4% - previously the Commerce Department had reported the economy grew at 3.2% in Q4.  (Photo by Andrew Burton/Getty Images)

    Andrew Burton/Getty

    For the first time since 2011, the U.S. economy shrank. Gross domestic product in the first quarter of 2014 fell 1 percent, a bigger decline than the 0.1 percent increase that was projected by the Commerce Department. Most economists had expected a half-percent drop. Analysis is pointing to companies adding inventory at a weaker pace and less investment. For the year 2013, the economy expanded by 1.9 percent, after a 2.8 percent gain in the previous year. Employment numbers have been strong in recent months, as employers added 288,000 workers in April, following 203,000 in March and 222,000 in February, according to the Labor Department.

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