The US Q4 gdp contraction has been revised to 6.2 per cent from a previous 3.8 per cent estimate. All we can say is ouch.
From Reuters:
NEW YORK, Feb 27 (Reuters) – 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.
Here’s the link to the Commerce Department data.
Meanwhile, Reuters reports Citigroup was down as much as 50 per cent in pre-market trade on news of the conversion deal which sees the US Treasury agree to convert up to $25bn in government-held preferred shares to common equity. You can view pre-market quotes here on Market Watch.
Time for the tin hats – again. Third notch on the chin strap required.
Related Link:
US govt to take 36% stake in Citigroup – FT.com