Peter Morici on the state of U.S. economy

Global Business

The U.S. economy saw a recession-like first quarter this year.
GDP contracted at an annualized rate of 2.9% , a sharper drop than expected. It’s also the biggest pullback since 2009.
High unemployment and sluggish demand during the winter months kept shoppers from opening up their wallets. Consumer spending accounts for more than two thirds of economic output.
Analysts had hoped the U-S economic recovery would take off – after a stellar ending to last year.

Wall Street didn’t seem to mind the worse-than-expected GDP number. Instead, investors remained optimistic for a turnaround in the second quarter.

Monsanto also boosted market sentiment. That’s after the world’s largest seed company announced a stock buyback plan. Rising drugmakers’ stocks also led the way up. All three indices closed in the green.

Here to talk more about the state of the U.S. economy, is Peter Morici. He’s a Professor of International Business at the R.H. Smith School of Business.

Peter Morici on the state of U.S. economy

Peter Morici on the state of U.S. economy

The U.S. economy saw a recession-like first quarter this year. GDP contracted at an annualized rate of 2.9% , a sharper drop than expected. It's also the biggest pullback since 2009. High unemployment and sluggish demand during the winter months kept shoppers from opening up their wallets. Consumer spending accounts for more than two thirds of economic output. Analysts had hoped the U-S economic recovery would take off - after a stellar ending to last year. Wall Street didn't seem to mind the worse-than-expected GDP number. Instead, investors remained optimistic for a turnaround in the second quarter. Monsanto also boosted market sentiment. That's after the world's largest seed company announced a stock buyback plan. Rising drugmakers' stocks also led the way up. All three indices closed in the green. Here to talk more about the state of the U.S. economy, is Peter Morici. He's a Professor of International Business at the R.H. Smith School of Business.