by Laura Conaway

U.S. Gross Domestic Product

Percent change by quarter, annualized rate

Source: Bureau of Economic Analysis

The American economy is still shrinking, and uncomfortably fast. U.S. GDP fell at an annualized rate of 6.1 percent in the first quarter, only a little better than the 6.3 percent decline from the quarter before and about a point more than most economists expected. Why the surprisingly bad number?

Companies pulled back from investing in equipment, buildings and software — at an annualized pace of 37.9 percent. Exports fell 30 percent, the most since the 1970s.

The good news? Ordinary people spent money. Consumption had been falling by 4 percent, but it rose last quarter by 2.2 percent. That was enough to boost GDP by 1.5 percent.