Friday, February 27, 2009

GDP Revision: Q4 GDP Declined at 6.2%

by Bill McBride on 2/27/2009 09:00:00 AM

From the WSJ: GDP Shrank 6.2% in 4th Quarter, Deeper Than First Thought

The U.S. recession deepened a lot more in late 2008 than first reported, according to government data showing a big revision down because businesses cut supplies to adjust for shriveling demand.
...
The sharply lower revision to a decline of 6.2% reflected adjustments downward of inventory investment, exports and consumer spending.

The report showed businesses inventories shrank $19.9 billion in the fourth quarter, instead of rising by $6.2 billion as Commerce originally estimated.
...
Fourth-quarter investment in structures decreased 5.9%. Equipment and software plunged 28.8%.
I'll have more on investment, but this is more in line with expectations in Q4.

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