Update: Judd Gregg on Budget….Market Mover: 4Q GDP loss biggest drop since ’82…

wall_st_bear_smallFutures selling off, we should hit new lows on the DOW and the S & P:

CNBC:

The U.S. economy contracted more sharply than initially estimated in the fourth quarter, government data showed on Friday, as exports plunged and consumers cut spending by the most in over 28 years amid a severe recession.

The Commerce Department said gross domestic product, which measures the total output of goods and services within U.S. borders, fell at an annual rate of 6.2 percent in the October-December quarter, the deepest slide since the first quarter of 1982. The government last month estimated the drop in fourth-quarter GDP at 3.8 percent.

The weaker GDP estimate reflected downward revisions to inventories and exports by the department.

The decline was worse than analysts’ expectations for a 5.4 percent contraction in fourth-quarter GDP. The economy expanded 1.1 percent in 2008, the slowest pace since 2001, the department said.

Consumer spending, which accounts for more than two-thirds of domestic economic activity, dropped at a 4.3 percent rate, the biggest fall since the second quarter of 1980, as household wealth plunged. That compared with a 3.5 percent fall estimated last month.

Exports, until recently one of the few pillars supporting the distressed economy, tumbled at a 23.6 percent annual rate, the steepest plunge since 1971. That was revised from the 19.7 percent drop estimated in last month’s report.

February 27, 2009. Tags: , , , , , , , , , , , . Economy, Finance, Obama Administration, Politics, Uncategorized, Unemployment Statistics, Wall St.

3 Comments

  1. JD64 replied:

    “Yes, there are other fundamental issues with our economy, but the housing market led us into this recession and the housing market will lead us out. It just won’t be solely at the hands of the government, it will be to some degree at the hands of the American people,” said TheGreatAmericanHousingRecovery.com. “Simply put, the issue is fundamental supply and demand. There are just too many homes for sale on the market. If we can get Americans to pull their homes for sale off the market then we immediately alter the supply side of the model.”

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  2. » Update: Judd Gregg on Budget….Market Mover: 4Q GDP loss biggest drop since ‘82… replied:

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  3. » Market Mover: 4Q GDP loss biggest drop since ‘82… replied:

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