by Bill McBride on 2/27/2009 09:00:00 AM
Friday, February 27, 2009
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.I'll have more on investment, but this is more in line with expectations in Q4.
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%.
Posted by Bill McBride on 2/27/2009 09:00:00 AM