U.S. Economy: GDP Shrinks 6.2%, More Than Previously Estimated
The U.S. economic contraction in the fourth quarter was deeper than the government first estimated, with other reports today signaling little prospect of relief until at least the middle of 2009.
Gross domestic product shrank at a 6.2 percent annual pace from October through December, the most since 1982, the Commerce Department said today in Washington. Separate figures showed consumer sentiment and business activity dropped this month.
“There has been no evidence that the pace of decline is slowing at all,” Bill Cheney, chief economist at John Hancock Financial Services Inc. in Boston, said in an interview with Bloomberg Television. President Barack Obama’s $787 billion stimulus package will “kick in” in mid-2009 at the earliest, he said.