Economists cut U.S. growth estimates on drop in health spending

The U.S. economy probably contracted even more in the first quarter than currently estimated as spending on health-care services unexpectedly dropped, according to analysts at JPMorgan Chase & Co. and Pierpont Securities LLC. More

To continue reading this article, please do one of the following.



economic indicators

Economists cut U.S. growth estimates on drop in health spending

Posted 6/11/14

The U.S. economy probably contracted even more in the first quarter than currently estimated as spending on health-care services unexpectedly dropped, according to analysts at JPMorgan Chase & Co. and Pierpont Securities LLC.

Quarterly data on services issued Wednesday by the Census Bureau showed health-care outlays dropped at a 5.8 percent annualized rate from January through March compared with the government’s current estimate of a 9.7 percent gain, said Daniel Silver, a JPMorgan economist in New York, based on the bank’s own seasonal adjustment. The pullback means gross domestic product shrank at about a 1.6 percent pace in the first three months of the year, according to JPMorgan’s calculations.

The world’s largest economy contracted at a 1 percent rate in the first quarter, the first drop in three years, as companies added to inventories at a slower pace and curtailed investment, according to revised figures issued May 29. The numbers will be revised again on June 25 as more data, including the information on services issued Wednesday, become available.

Wednesday’s report “should mean there’s a downward revision,” Silver said in an interview. The “first quarter is going to be weaker.”

Next Page
Calendar
PBN Hosted
Events

Applications are now being accepted for the 14th Annual Business Excellence Awards Program. Deadline to apply is October 1st. And save the date for the Awards Dinner - November 12th at the Providence Marriott.
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement