Fourth Quarter GDP, was revised down to -6.2%, the worst quarter since Q2 1980 when economic "growth" was -7.8%. The revision is a significant move from the -3.8% that was originally reported.
Here is a breakdown of where the economy is shrinking, and growing, most.
Gross Domestic Product: -6.2%
Personal Consumption: -4.3%
Durable Goods: -22.1%
Nondurable Goods: -9.2%
Services: +1.4% (Driven by a 13% increase in Electric & Gas use)
Private Investment: -20.8%
Net Exports:
Exports: -23.6%
Imports: -16.0%
Government Consumption: +1.6%
Federal: +6.7%
State 7 Local: -1.4%
(The above data is from CNBC)
This will have to come to an end , eventually. Unfortunately I do not see yet a potential catalyst to turn this ship around besides the stimulus package.
6 comments:
the numbers are scary. it is sad to say but what must go upm must come down and vise versus. Depressions...recessions they are a part of life, who really believes that the world could have kept going at such high rates forever. I believe economists predicted that this decline would get worse before better. Strap on your boots we are in for the long haul. I just feel bad that President Obama has to be the one to deal with this burden. I wouldn't take the presidency even if you paid me a billion dollars. Not that a billion dollars means anything in today's world.
I agree with what Mary had said that what goes up must go down because that holds true in our economy, but as for Obama it's his job to help this country get out of the recession. To feel remorseful for him would be wrong, but we must instead do what we can to help with the situation such as spending money or saving it in banks.
-Brian Smith
True... I would hate to be in Obama's shoes right now, but Brian is right this is his job. And I have confidence that he and his cabinet members are fully capable of STARTING to turn this around. I emphasize "starting" because, as you can see from the numbers, this thing isn't turning around very soon. Whoever thinks Obama will magically find some quick-fix is greatly mistaken (nobody could). But I do believe that by the end of his presidency (both terms hopefully) that the economy will be back to at least stable condition where people can spend and invest without worry.
-Chris Cochran-Torres
The economy has been through a numberof recessions before this so it only holds fair that we allow time for the situation to eventually turn around. Although this is anextremely low point in the business cycle, it is still "the business cycle" which means that it will revolve out of a recession and into a grace period. The only question is time.
-Travis Buckley
I agree with Mary too. I hope that Obama can find a way to lead the American people out of the shadows of darkness. I really hope that he is ready to do all the me promised. But people remember make money to have to spend money and people are too scared to spend anything. Really have we not been through the worse part of it all? Amanda McQueen 106 WED
Wow... These numbers are truly frightening because it seems as if everything is negative around us! Yes I understand that it will take some time to get back up and running, but how much longer? We have been through recessions and depressions in the past but aren't we used to it enough to k now how to bring it back up to speed? This is the US for God's sake! We know if we make the right decisions it will surely benefit us quickly. Lets just hope that what "has gone down will come back UP!"
-Rabia Javed
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