Economy Slides 5.7% in First Quarter

The U.S. economy shrank a slightly more-than-expected 5.7% in the first quarter, according to the second of three readings of GDP by the federal government.

The Bureau of Economic Analysis' "preliminary" reading of GDP improved from its "advance," or first reading last month, which predicted a 6.1% slide. The preliminary reading is better than the 6.1% slide in the fourth quarter, but the consensus reading of economists was a 5.5% slide.

The improvement from the fourth quarter reflected a larger decrease in imports, which subtract from real GDP, as well as an upturn in consumption of durable goods and a smaller decrease in consumption of nondurable goods.

Still, negative contributions from exports, equipment and software, private inventory investment, nonresidential structures and residential fixed investment weighed on the number.

The BEA's final reading of first-quarter GDP is expected June 25.