Following last weeks news of a sharper than expected drop in UK GDP in the first quarter of this year, there was similarly gloomy news from across the pond. Advance estimates of US GDP for q1 show the economy contracting at an annualised rate of over 6%. A 30% fall in exports - the biggest drop in 40 years - was a particular drag on growth. And a 37% fall in business investment didn't help the numebrs either. But there appears to have been some growth in consumer spending - for the first time since 2008q2. And while we're on the subject of better news, US consumer confidence also recorded quite a bounce in April - possibly a sign that conditions aren't getting any worse?
While the export picture was dire for the US economy in the past three months, the outlook for the world's exporting powerhouse - Germany - is just as bad. Official forecasts released today show that the Germany economy is likely to shrink by 6% this year, with total exports slumping by around a fifth.