US Q1 economy shrinks 2.9%; worst in 5 years

WASHINGTON, D.C.: The US economy shrank a steep 2.9 percent in the first quarter in its worst contraction in five years, the government said on Wednesday, but more recent data signals a rebound.

The Commerce Department sharply revised downward its May estimate of a 1.0 percent contraction in the January to March period, saying there was weaker growth in consumer spending, a larger increase in exports and higher imports than previously known.