By Jonathan Davies
The US economy shrank 0.7% in the first three months of the year, according to the Bureau of Economic Analysis.
It last contracted in the first quarter of 2014 when GDP fell 2.1% after extreme weather over winter.
The Bureau had previously estimated the economy to have grown 0.2% in the first quarter. But it said that it underestimated the rise in imports and overrated investment.
It is thought that weather again played a part in the downfall, although it was not as harsh as last year.
Consumer spending, which accounts for roughly 70% of US GDP - like the UK services sector, grew by just 1.8% in the quarter. Growth of 1.9% had been predicted.