Second GDP Estimate Better Than Expected

Washington, DC, Aug. 27, 2009--Real gross domestic product fell at a 1% annualized rate after plunging 6.4% in the first quarter, the Commerce Department reported Thursday.

This second estimate of the GDP was identical to the first reading and better than economists were expecting.

The economy contracted four quarters in a row for the first time since the Great Depression of the 1930s.

The government revises the data as it gets more complete and accurate information.

Economists were expecting the decline in GDP to be revised lower to 1.5% annualized.

In a separate report, the Labor Department said initial jobless claims fell by 10,000 to 570,000 last week.

The massive job cuts and inventory liquidation by businesses are paying off, according to the report. Before-tax corporate profits increased $67.6 billion to $1.25 trillion annualized, or 5.7% at a quarterly rate, the fastest increase in four years, after a 5.3% gain in the first quarter.

The details of the GDP report suggest the economy is poised for a stronger rebound in the third quarter of the year.