4th Quarter 2008 GDP: -6.3%

The Commerce Department reported that the third and final reading for U.S. economic growth during the fourth quarter of 2008 resulted in a minor downward revision from a seasonally adjusted, annualized growth rate of minus 6.2 percent to minus 6.3 percent.

This marks the worst quarter for the U.S. economy since early 1982 when the economy contracted at an annual pace of 6.4 percent during the second of two early-1980s recessions. The second quarter of 1980 saw a contraction at a 7.8 percent pace and the post-WWII record stands at -10.8 percent in early 1958.

For the year, the economy expanded 1.1 percent, the smallest advance since the 0.8 percent expansion in 2001.

from the Mess that Greenspan Made

4th Quarter 2008 GDP: Negative 6.2%

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4th Quarter GDP: Negative 6.2%

The U.S. recession deepened a lot more in late 2008 than first reported, according to government data showing a big revision down because businesses cut supplies to adjust for shriveling demand.

Gross domestic product decreased at a seasonally adjusted 6.2% annual rate October through December, the Commerce Department said Friday in a new, revised estimate of fourth-quarter GDP.

The 6.2% decline meant the worst quarterly showing for GDP since a 6.4% decrease in first-quarter 1982 GDP.

In its original estimate, issued a month ago, the government had reported fourth-quarter 2008 GDP fell 3.8%. The sharply lower revision to a decline of 6.2% reflected adjustments downward of inventory investment, exports and consumer spending.

read the WSJ article

4th Quarter GDP 2008: Negative 3.8%

Of course, that's not the end of the story. This is the first of three estimates for economic growth during this period - the "advance" estimate - to be followed by the "preliminary" estimate next month and the "final" estimate at the end of March...

The 3.8 percent rate of decline was the weakest showing for the U.S. economy since the first quarter of 1982 when real economic growth contracted at a 6.4 percent annualized rate, however, some analysts fear that the data will be revised downward sharply in the months ahead and that the current quarter may be even worse.

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GDP Drops 3.8%

The U.S. economy suffered its biggest slowdown in 26 years in the last three months of 2008, according to the government's first reading about the fourth quarter released Friday.

Gross domestic product, the broadest measure of the nation's economic activity, fell at an annual rate of 3.8% in the fourth quarter, adjusted for inflation.

That's the largest drop in GDP since the first quarter of 1982, when the economy suffered a 6.4% decline.

Still, the decline was less than the 5.5% drop forecast by economists surveyed by Briefing.com. The fourth quarter plunge followed a more modest decline of 0.5% in the third quarter.

read the CNN story

4th Quarter GDP: Decrease 5% to 9%???

There is no debate that the U.S. economy is in terrible shape at the moment.

Nearly 2.6 million jobs were lost last year, with the majority of them coming in the final four months of the year. And some economists are forecasting as much as a 5% to 9% drop in economic activity during the fourth quarter, which could be the biggest drop in 50 years.
But some economists are starting to believe that there could be a much stronger and quicker recovery than is now widely expected.

read the CNN story