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.
Posted by: truthhurts | December 23, 2008 9:07 AM | Report abuse
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