AP: Economy sputters with 0.6 percent growth (4th quarter '07)

[jordi_fanclub]

Source: AP via Yahoo

WASHINGTON - The economy nearly sputtered out at the end of the year and is probably faring even worse now amid continuing housing, credit and financial crises.

The Commerce Department reported Thursday that gross domestic product increased at a feeble 0.6 percent annual rate in the October-to-December quarter. The reading — unchanged from a previous estimate a month ago — provided stark evidence of just how much the economy has weakened. In the prior quarter, the economy clocked in at a sizzling 4.9 percent growth rate.

The gross domestic product (GDP) measures the value of all goods and services produced in the United States and is the best barometer of the country's economic health.

Many economists say they believe growth in the current January-to-March quarter will be even weaker than the 0.6 percent figure of the previous quarter. A growing number also say the economy may actually be shrinking now. Under one rough rule, the economy needs to contract for six straight months to be considered in a recession. The government will release its estimate for first-quarter GDP in late April.

Read more: http://news.yahoo.com/s/ap/20080327/ap_on_bi_go_ec_fi/economy

[fasttense]

1. It's very likely negative considering the bushes math

for GDP includes inaccurate (by about 7% underreported) inflation numbers. So It has probably fallen to negative 6.4%. We have been in the negative for quite some time. It's just that the gubermint doesn't know how to do math.

[Zynx]

2. -6.4% would be the steepest contraction since the Depression and there just

isn't evidence of that. Barely 1% of contraction leads to 7% unemployment or worse. The 2-3% contraction in the early 1980s led to 11% unemployment. -6.4% would be in the neighborhood of probably 15% unemployment. I don't see it.

[PSPS]

3. Of course, the happy news station here was very upbeat saying this was "not as bad as expected."

[libodem]

4. Don't 2 consecutive feeble quarters= a recession

for Mr McTax Cuts Bush? Is there anything that has not gone to ruin under his watch?