A closer look at the numbers suggests that there are even more reasons for next quarter's GDP to show a marked decline. First, the trade deficit had less of an impact on the GDP than in recent quarters. Until recently, the trade deficit was ballooning seemingly out-of-control causing the GDP to look more negative. Now, the trade deficit has been reduced slightly. This decrease was caused predominantly by less consumer demand for imported products. And just as consumer demand for imported products has declined, the demand for domestic products will also begin to soften in the next quarter.

Second, the government pumped up spending in the first quarter, contributing to an increase in GDP. But, this traditionally has been a volatile number, and may continue into next quarter.