Thursday, October 30, 2008

Q3 GDP Declines 0.3%

by Calculated Risk on 10/30/2008 08:30:00 AM

From the BEA: GROSS DOMESTIC PRODUCT: THIRD QUARTER 2008 (ADVANCE)

Real gross domestic product -- the output of goods and services produced by labor and property located in the United States -- decreased at an annual rate of 0.3 percent in the third quarter of 2008 ...

The decrease in real GDP in the third quarter primarily reflected negative contributions from personal consumption expenditures (PCE), residential fixed investment, and equipment and software that were largely offset by positive contributions from federal government spending, exports, private inventory investment, nonresidential structures, and state and local government spending. Imports, which are a subtraction in the calculation of GDP, decreased.
PCE declined -3.1% (annualized). This is the first decline in consumer spending since 1991.

Private investment declined -1.9%. I'll have some graphs on investment shortly.