The world’s a depressing place when the biggest drop since 1982 is actually better than many expected…
Jan. 30 (Bloomberg) — The U.S. economy shrank less than forecast in the fourth quarter as a collapse in spending led to a buildup in inventories that will cause companies to retrench even more in the early part of this year.
Gross domestic product contracted at a 3.8 percent annual pace from October through December, the most since 1982, the Commerce Department said today in Washington. A gain in stockpiles contributed 1.3 percentage points to growth, partially compensating for a back-to-back drop in consumer spending. Prices also retreated…
GDP was forecast to contract at a 5.5 percent annual pace last quarter, according to the median estimate of 79 economists surveyed by Bloomberg News. Projections ranged from declines of 3 percent to 7 percent.
Related links:
Gross domestic product: fourth quarter 2008 – Bureau of Economic Analysis
Preachin’ the GDP good news since ’78 – FT Alphaville