Economists estimated U.S. GDP contracted in Q1, but not by this much.
According to the Bureau of Economic Analysis, GDP fell 2.9% at an annualized rate in Q1. This third estimate was down sharply from the BEA's previous estimate of -1.0%.
This was also much worse than the -1.8% forecasted by economists.
As expected healthcare spending was revised down sharply. It went from adding 1.01 percentage points to subtracting 0.16 from the headline GDP growth number.
"It marked the second biggest downward revision from the agency's second GDP estimate since records began in 1976," reported Bloomberg's Jeanna Smialek.