First quarter results

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U.S. Commerce Department: U.S. economy worst in 50 yearsTriangle Business Journal

Its official. The United States is mired in its worst economic downturn in half a century, the U.S. Commerce Department reported Wednesday.

Data released by the department show that the U.S. economy shrank by 6.1 percent during the first three months of the year – a full percentage point worse than what analysts polled by Thomson Reuters had been predicting.

It was the second straight quarter the U.S. economy contracted by more than 6 percent. The fourth quarter of 2008 produced a 6.3 pecent decline – the biggest drop in 25 years.

The back-to-back bad quarters created the worst economy over a six-month period in 50 years, the commerce department said.

Businesses cut expenses for items such as equipment and software, and U.S. exports dropped to their lowest level in four decades during the quarter than ended March 31, giving little hope that the recession will ease this year.

The announcement comes a day after consumer confidence increased 2.2 percent, the biggest jump since 2007, a bit of optimism dashed by the economic figures Wednesday.