Third-Quarter GDP Down 0.5 Percent
The Commerce Department said gross domestic product fell 0.5 percent in the third quarter, which was what analysts had been expecting. It's equal to the drop that was estimated last month.
The department said in its statement that some of the biggest drivers of the drop were personal spending, residential fixed investment, and equipment and software. Those declines, however, were partly offset by government spending at the federal, state and local level, as well as exports and nonresidential structures.
Economists believe GDP will drop much more in the fourth quarter, with more layoffs and spending being cut back. The Associated Press reports that IHS Global Insight is expecting a drop of 6 percent.
--Terri Rupar
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Terri Rupar
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December 23, 2008; 8:34 AM ET
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Posted by: truthhurts | December 23, 2008 9:07 AM | Report abuse
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El Presidente' made several whistle stops at a Caterpillar Inc. factory in the Midwest. On his last visit, the Ego in Chief, touted economic growth through employment at Caterpillar.
Caterpillar had devised a plan to weather a domestic economic storm by counting on overseas growth to make their shareholders happy.
Am wondering now if the Comforter-in-Chief will again visit Caterpillar as their domsestic plants enter into retrenching or positioning for government bail-out, take your pick.