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In surprise, GDP shrinks by 0.1 percent in fourth quarter

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mystery-ak:
http://thehill.com/blogs/on-the-money/economy/280045-us-economic-growth-falls-01-percent


In surprise, GDP shrinks by 0.1 percent in fourth quarter
By Peter Schroeder - 01/30/13 08:45 AM ET

The nation's economy unexpectedly shrank by 0.1 percent in the fourth quarter of 2012, casting fresh doubt on the strength of the economy recovery.

The new estimate of gross domestic product (GDP) from the Commerce Department marks the first time the economy shrank since it was in the depths of the recession in mid-2009.

As the "fiscal cliff" loomed, a significant downturn in government and defense spending contributing to the surprising number.

Real federal government expenditures and investment fell 15 percent in the fourth quarter, compared to a 9.5 percent increase in the third. And national defense spending tumbled 22.2 percent, compared to a 12.9 percent boost in the third quarter. Nondefense spending actually increased 1.4 percent in the fourth quarter.

The dip came as a surprise to economists. Experts had believed the U.S. would post a modest economic gain of slightly over 1 percent, after logging a 3.1 percent increase in the third quarter.

The initial estimate for the fourth quarter will be revised twice going forward, but the surprising decline will draw fresh scrutiny to an economic recovery that many thought had finally solidified, positioning the U.S. to make major economic gains in the coming year.

The austere spending from the public and defense sectors was slightly offset by a continued surging of spending by consumers and businesses. Personal consumption expenditures were up 2.2 percent in the fourth quarter, compared to 1.6 in the third. And purchases of durable goods also climbed by 13.9 percent compared to 8.9 percent in the third.

Underlining that boost in personal spending was strong growth in personal income, which was up 7.9 percent, and disposable income was up 8.1 percent.

A significant decline in exports (5.7 percent) also contributed to the contraction. Exports had climbed 1.9 percent in the third quarter. State and local government spending was also down in the fourth quarter, 0.7 percent compared to a 0.3 percent gain in the third.

The new report also found that the nation's economy expanded by 2.2 percent in 2012 up from a 1.8 percent gain in 2011.

Scottftlc:
I believe that I've read that first sentence, with modest alterations in the number presented, at least 100 times in the last 4 years.  How long can you cast doubt on the strength of an economic "recovery" before it doesn't classify as a recovery any longer?

Relic:

--- Quote from: Scottftlc on January 30, 2013, 02:23:40 pm ---I believe that I've read that first sentence, with modest alterations in the number presented, at least 100 times in the last 4 years.  How long can you cast doubt on the strength of an economic "recovery" before it doesn't classify as a recovery any longer?

--- End quote ---

Americans are stupid. They have no ability to think beyond what the Obama media tells them. The Obama media is so invested in Obama that they are unable to tell the truth. To the Obama media, a recession is a slowed recovery.

Imagine the talk by the traitorous scumbags in the media if a Republican were president.

I used to think that lawyers were the major problem in America. I was so blind. The Obama media has caused such trouble that if they were lined up against a wall, I wouldn't mind at all.

Scottftlc:
The fact that so many people are addicted to the Obama info-tainment media is the true problem.  No discernment...the people make it easy for the elites to own them.

Oceander:
A "surprise" to whom?  Certainly not to anyone with at least half a brain and the willingness to use it.

And that was in the 4th Quarter of 2012; just wait to see how surprisingly the economy performs in the First Quarter of 2013, now that the Obama taxes are kicking in.

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