Original 3Q GDP Estimate Unrevised

Washington, DC, Dec. 23, 2008--The economy slowed substantially in the third quarter, declining at a 0.5% annual rate, unrevised from last month's estimate, the Commerce Department reported Tuesday.

It's the weakest quarterly growth rate since the first quarter of 2001. The economy grew 2.8% in the second quarter.
 
Economists now say that a recession began December 2007, based on data showing declining employment, incomes and industrial production.

For the current quarter, economists are predicting a sharp decline in the neighborhood of 6.0%. This would be the biggest drop since the early 1980s.
 
Gross domestic purchases -- the total value of goods and services bought by U.S. residents -- fell 1.5% in the third quarter, experiencing downward momentum after falling only 0.1% in the second quarter. Final sales of domestic product, including exports, fell 1.3%.
 
In the revision released Tuesday, stronger commercial building was offset by less investment in equipment and software.

The biggest revision in the report was in nonresidential investment, which did not fall as much as first believed.

Consumer spending fell 3.8% not 3.7%, with weaker spending on nondurable goods.

Business investments decreased 5.3%, not 5.6%.

Residential investments fell 16.0%, not 17.6%.
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