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MONDAY, NOVEMBER 23, 2009
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GDP Slows Descent, Falls Just 1%

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(Newser) – The US economy contracted in the second quarter, but it was a mild decline that beat analyst estimates, Bloomberg reports. GDP fell 1%, less than the 1.5% economists predicted, and a heck of a lot less than the 6.4% and 5.4% drops seen in the two previous quarters. “We’re well on our way to a recovery,” says one economist. “But, inevitably, it’ll be choppy.”

Today’s report wasn’t all good. Compared to last year, GDP is down 3.9%, the biggest year-over-year drop since records began in 1947. Consumer spending, which makes up 70% of the economy, fell twice as much as forecast, and with job losses mounting, won’t recover quickly. But rising business spending and a shrinking trade gap helped offset those declines.

People exit work in the financial district October 30, 2008 in New York City.
People exit work in the financial district October 30, 2008 in New York City.   (Getty Images)
Household items are displayed in a store window on Tuesday, May 22, 2007 in New York.
Household items are displayed in a store window on Tuesday, May 22, 2007 in New York.   (AP Photo/Mark Lennihan)
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Altoecko
Jul 31, 09 2:12 PM CDT
I say we'll have an expansion in the third quarter of 2010. We'll probably just be treading water till then. Reply
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