GDP Shows Surprise Drop for US in Fourth Quarter

[pwaldo]

http://www.cnbc.com/id/100419252

The U.S. economy posted a stunning drop of 0.1 percent in the fourth quarter, defying expectations for slow growth and possibly providing incentive for more Federal Reserve stimulus.

The economy shrank from October through December for the first time since the recession ended, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That's a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.

The surprise contraction could raise fears about the economy's ability to handle tax increases that took effect in January and looming spending cuts.

Economists expected the first reading on gross domestic product to show growth of 1 percent, down from the third quarter's reading of 3.1 percent.

[centrehice]

The drop in year-end productivity is done by all companies.

We used to go like hell in early December, make our bones for the month and come up a little light for year end. If not then January is a complete mess.

Most Publicly Traded and Privat Companies often book December sales into the New Year simply because January has always traditionally been a BEAR, and posts little gains on it's own. Many December sales are pushed and booked into January of the next year as January is a very difficult month in which to sell anything.

[tpeichel]

While liberals flail about with talk of gun control, immigration, and the environment, the economy continues to crater. I wonder how many recessionary dips it will take before people realize we've been in a depression this whole time and that it was simply masked by the government deficit spending $100 billion per month?

[Wickabee]

While liberals flail about with talk of gun control, immigration, and the environment, the economy continues to crater. I wonder how many recessionary dips it will take before people realize we've been in a depression this whole time and that it was simply masked by the government deficit spending $100 billion per month?

You're not in a depression if it's still falling. That's a recession. When you hit bottom and stay there that's a depression.

So, as long as you're ragging that Obama is losing more, you're still whining about a recession.