GDP takes tumble

The 6.1 percent first-quarter decline was worse than expected (4.7 percent had been the consensus). Also, it was the third straight quarter of contraction. The main culprit this time was the lack of business investment - companies just stopped spending during the January-March period. From the NYT:

If there was one bright spot in the numbers, it was that consumer spending edged up by 2.2 percent after two quarters of declines. The sharper-than-expected drop in economic output came in sharp contrast to recent signs of stabilization in the economy. Credit markets that spiraled out of control late last year are stabilizing, and retail sales and orders by manufacturers are no longer posting record declines. And on Tuesday, a closely watched gauge of home prices in the United States leveled off by a hair, the first time in 16 months that the slide in housing prices did not accelerate.

For what it's worth, the stock market is opening sharply higher, with the Dow up more than 100 points in early trading.