Reuters - Video

EDITION: U.S. | U.K. | IN

Finance Videos

U.S. GDP barely grows in first quarter

Wednesday, April 30, 2014 - 01:39

April 30 - The cold snowy weather nearly froze U.S. growth, but economists don't expect the Fed to stop curtailing its bond purchases. Fred Katayama reports.

▲ Hide Transcript

View Transcript

A stunning slowdown in economic growth that was way below forecasts. The unusually cold snowy winter nearly froze U.S. growth. Gross domestic product expanded at a measly 1/10th percent clip in the first three months of this year, just a fraction of the rate of the previous quarter. Strategist Liz Miller of Summit Place Financial Advisors: SOUNDBITE: LIZ MILLER, STRATEGIST, SUMMIT PLACE FINANCIAL ADVISORS (ENGLISH) SAYING: "It's a shock. Given we're 20 minutes into the market, everyone will sit back and say, let's wait for a revision." Exports plummeted as overseas economies slowed and goods got stuck at ports amid the bad weather. The wet weather also hurt home building. And businesses didn't see a need to buy equipment or build up a lot of inventory, curtailing production. The harsh weather kept consumers away from shopping malls, so they bought fewer goods. But they spent more on home heating and on medical services because of the Affordable Healthcare Act. Now that the winter is gone, economists expect demand to bounce back and growth to pick up. The GDP number comes just hours ahead of the end of the two-day meeting by Federal Reserve policymakers. Chief economist Markus Schomer of PineBridge Investments says the weak data won't prevent the Fed from curtailing its bond purchase program aimed at stimulating growth. SOUNDBITE: MARKUS SCHOMER, CHIEF ECONOMIST, PINEBRIDGE INVESTMENTS (ENGLISH) SAYING: "I'd be shocked if they take that number, we all know is whacky, and base a momentous decision with implications for the financial markets on that very low quality number." This is just the first estimate of GDP. We'll get a revised estimate at the end of May.

Press CTRL+C (Windows), CMD+C (Mac), or long-press the URL below on your mobile device to copy the code

U.S. GDP barely grows in first quarter

Wednesday, April 30, 2014 - 01:39

Top News »

Investing 201 »

Arian Foster = BlackBerry? Arian Foster = BlackBerry?

Fri, Oct 25, 2013 - (3:16)

Don’t miss these red flags for IPOs Don’t miss these red flags for IPOs

Thu, Oct 10, 2013 - (2:34)

Copycat currency trading Copycat currency trading

Wed, Oct 02, 2013 - (2:28)

When to dump a winner When to dump a winner

Tue, Sep 24, 2013 - (1:55)

Where gold might again attract Jim Rogers Where gold might again attract Jim Rogers

Thu, Sep 19, 2013 - (2:05)

Why savings interest rates won't budge Why savings interest rates won't budge

Fri, Sep 13, 2013 - (2:09)

Buy local? ETFs try the trend Buy local? ETFs try the trend

Thu, Sep 05, 2013 - (2:42)

The better bond funds The better bond funds

Wed, Aug 07, 2013 - (2:40)

Best bargain in 40 years? European stocks Best bargain in 40 years? European stocks

Thu, Aug 01, 2013 - (2:24)

Invest like an activist Invest like an activist

Fri, Jul 26, 2013 - (2:49)

Money Clip »

3 things to do before disaster strikes 3 things to do before disaster strikes

Wed, Sep 18, 2013 - (1:39)

Your must-do money list Your must-do money list

Wed, Sep 11, 2013 - (1:24)

The worst "best" financial advice The worst "best" financial advice

Wed, Sep 04, 2013 - (1:42)

Forget gold: The case for REITs Forget gold: The case for REITs

Fri, Apr 26, 2013 - (1:19)

3 rules for buying a house now 3 rules for buying a house now

Thu, Apr 18, 2013 - (1:39)

“Stalking” your dream home - Money Clip “Stalking” your dream home - Money Clip

Wed, Mar 27, 2013 - (2:50)

3 hidden tax deductions - Money Clip 3 hidden tax deductions - Money Clip

Thu, Mar 21, 2013 - (1:33)

Moving Pictures »

Images of September Images of September

Wed, Oct 01, 2014 - (1:00)

Still missing – MH370 Still missing – MH370

Fri, Sep 05, 2014 - (2:05)

Burning Together Burning Together

Mon, Sep 01, 2014 - (2:23)

Mending dolls, teddies and hearts Mending dolls, teddies and hearts

Fri, Aug 22, 2014 - (3:12)

Images of August Images of August

Fri, Aug 29, 2014 - (1:00)

"Old timers" sail the Chesapeake Bay "Old timers" sail the Chesapeake Bay

Mon, Aug 11, 2014 - (2:27)

Burned memories Burned memories

Fri, Aug 08, 2014 - (3:02)

Images of July Images of July

Thu, Jul 31, 2014 - (1:20)

World Cup: passion on the pitch World Cup: passion on the pitch

Fri, Jul 11, 2014 - (1:00)

A refugee in America gives back A refugee in America gives back

Thu, Jul 03, 2014 - (3:25)

Reuters Investigates »

Re-homing victim: "I could have been dead" Re-homing victim: "I could have been dead"

Wed, Feb 19, 2014 - (8:24)

Cops and loggers in the Amazon rainforest Cops and loggers in the Amazon rainforest

Fri, Jan 10, 2014 - (4:01)

"Passed around like a dog" "Passed around like a dog"

Thu, Aug 29, 2013 - (6:32)

Adopted, then abandoned online Adopted, then abandoned online

Thu, Aug 29, 2013 - (13:21)

How the DEA keeps its secrets secret How the DEA keeps its secrets secret

Mon, Aug 05, 2013 - (1:36)

How education lost its role as the great equalizer - Reuters Investigates How education lost its role as the great...

Mon, Dec 17, 2012 - (7:52)

Jihad Jane: From abused child to American jihadist - Reuters Investigates Jihad Jane: From abused child to American...

Sat, Dec 08, 2012 - (10:01)

Jihad Jane: The order to kill - Reuters Investigates Jihad Jane: The order to kill - Reuters...

Sun, Dec 09, 2012 - (10:39)