The nation's gross domestic product declined by 6.3% in the fourth quarter -- the biggest drop since 1982.NEW YORK (CNNMoney.com) -- The U.S. economy suffered its largest drop in 26 years during the fourth quarter, according to a report from the government.
The nation's gross domestic product, the broadest measure of economic activity, fell at an annual rate of 6.3% during the final three months of 2008. That's slightly worse than the government's previous estimate of a 6.2% drop in the period.
Economists surveyed by Briefing.com had forecast that GDP would fall at a 6.6% rate in the latest reading.
The drop is the biggest one-quarter decline in this key measure since the first three months of 1982.
The report showed broad based declines across various measures of economic activity. Spending by consumers fell at a 4.3% rate, with purchases of large ticket items plunging 22%. Investment in housing fell 23% from already depressed levels, completing three straight years of declines in that sector.
Investment in equipment and software, taken as a measure of business spending, plunged at a 28% rate. Exports tumbled at a 24% rate.
The economic problems have obviously not ended with the fourth quarter report. Economists surveyed by the National Association for Business Economics forecast a 5% rate of decline in the first quarter, which ends Tuesday, followed by a 1.7% drop in the second quarter.
http://money.cnn.com/2009/03/26/news/economy/gdp/index.htm?postversion=2009032608
Topic: Economy: Worst in 26 years (Read 544 times)