The US economy shrunk at a worse than expected annualised pace of 1 per cent in the first quarter of 2014 but the fall says little about its current health.
The Bureau of Economic Analysis revised its first estimate down from growth of 0.1 per cent to a contraction of 1 per cent. But while the initial weakness was due to bad weather, the revision was almost entirely falling inventories.
Most economists expect growth to rally towards a pace closer to 3 per cent for the rest of the year.
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