(WSJ) The U.S. Recovery Shows a Soft Spot as 4th Quarter 2012 GDP comes in Negative

Posted by Kendall Harmon

The U.S. economy shrank for the first time in more than three years in the fourth quarter, underscoring the halting nature of the recovery. But the strength of consumer spending and business investment suggested that the economy will grow, albeit slowly, this year.

Gross domestic product—the broadest measure of goods and services churned out by the economy—fell at a 0.1% annual rate in the fourth quarter of 2012, according to the government's initial estimate out Wednesday.

The details weren't as discouraging as the headline. The drop, a surprise, was driven by a sharp fall in government spending and by businesses putting fewer goods on warehouse shelves, as well as by a decline in exports. The mainstays of the domestic private economy—housing, consumer spending and business investment in equipment and software—were stronger.

Read it all.

Filed under: * Economics, PoliticsEconomyConsumer/consumer spendingCorporations/Corporate LifeThe U.S. GovernmentBudget* International News & CommentaryAmerica/U.S.A.

0 Comments
Posted January 31, 2013 at 5:35 am [Printer Friendly] [Print w/ comments]
Registered members must log in to comment.




Next entry (above): Israeli Secularists Appear to Find Their Voice

Previous entry (below): Justin and Caroline Welby at the Trent Vineyard, an interview hosted by John Mumford

Return to blog homepage

Return to Mobile view (headlines)