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Entries in Gross Domestic Product (11)

Wednesday
Jan302013

GDP Drops 0.1% in Fourth Quarter

Comstock Images/Thinkstock(NEW YORK) -- The U.S. economy shrank last quarter for the first time since 2009, surprising many experts who didn't expect to see a contraction.

According to Commerce Department figures released on Wednesday, gross domestic product, or GDP, decreased 0.1 percent in the fourth quarter.

"Most economists were anticipating a sharp slowdown between Q3 and Q4 but economists were not expecting a slowdown to the degree that actually pushed it into a contraction," Carl Riccadonna, the senior U.S. economist at Deutsche Bank, tells ABC News Radio.

He says the drop was largely due to one-time factors, like cuts in defense spending, fewer exports and slower inventory growth.

"Inventories alone subtracted about 1.3 percent off of the growth rate, then also, there was a sharp slowdown in government spending on defense and that subtracted another 1.3 percent," Riccadonna says.

But, as he notes, the contraction is not as bad as it looks.  There were pickups in consumer and business investment spending.

"If you look at that headline number, you say, 'Oh, contraction: Boy, we're on the cusp of recession,' but that's really a misleading story and as you look at the underlying details, it's still very much consistent with an economy that continues to regain its footing," Riccadonna says.

"This does still bode decently for economic output in the current quarter," he adds.

Copyright 2013 ABC News Radio

Friday
Apr272012

GDP Rose 2.2% in First Quarter

Comstock Images/Thinkstock(WASHINGTON) -- The U.S. economy expanded at an annualized rate of 2.2 percent in the first quarter, a slower pace than expected, keeping the recovery on track, but failing to generate enough activity to knock down the jobless rate significantly.

This first estimate will be revised later, but economists in various surveys had expected gross domestic product growth -- the output of all goods and services, from cars to electricity to manicures -- at 2.5 percent to 3.2 percent annualized.

“In reviewing the numbers, the fear now is that we may be running out of runway before the onset of another recession.  We will not be surprised to see continued growth in GDP given the fact that privately held companies continue to grow at a healthy rate,” said Brian Hamilton, CEO of Sageworks.  “However, what is becoming slightly concerning is that the unemployment rate is not decreasing at a fast enough rate.”

GDP growth was 3 percent in the final three months of 2011.  Much of the growth in the October to December quarter was due to businesses aggressively restocking their supplies.

Historically, Hamilton noted, it has taken approximately 12 to 20 months for unemployment to fall in an expansion to roughly pre-recession levels.

”Right now, we are into the 34th month of the recovery, and, yet, unemployment remains too high.  If we don’t get employment up, we may be bumping into the next recession, during which time we cannot expect job growth,” he said.

Copyright 2012 ABC News Radio

Wednesday
Feb292012

US Economy Grew 3% in Fourth Quarter of 2011

Comstock Images/Thinkstock(WASHINGTON) -- The Commerce Department announced on Wednesday that the U.S. economy grew at a slightly faster pace during the last three months of 2011 than had previously been reported.

The agency said the country's gross domestic product (GDP) increased at an annual rate of 3 percent in last year's fourth quarter, up from the previous estimate of 2.8 percent.  The revised figure marks the strongest growth in a year and a half.

The increase was boosted by rising consumer incomes and a higher savings rate.

Copyright 2012 ABC News Radio

Friday
Jan272012

GDP Rose 2.8% in Fourth Quarter

Comstock Images/Thinkstock(WASHINGTON) -- The Commerce Department reported Friday that the U.S. gross domestic product (GDP) grew at a 2.8 percent pace in the last three months of 2011, slightly less than expected but an increase over the prior quarter.

Economists expected a growth rate of about 3.1 percent in the fourth quarter, in part because of strong holiday shopping and car sales.

Real GDP, the output of goods and services produced in the U.S., increased at a revised annual rate of 1.8 percent in the third quarter.  The Commerce Department's Bureau of Labor Statistics reported the disappointing figure ahead of the holiday shopping season on Dec. 22.

Copyright 2012 ABC News Radio

Tuesday
Oct182011

Global Stocks Tumble Amid Latest Chinese GDP Report

Hemera Technologies/Thinkstock(NEW YORK) -- Ahead of Tuesday's opening bell, a new cause for concern has popped up for global investors: China's economic growth has slowed down.

The country reported on Tuesday that its third quarter gross domestic product increased 9.1 percent from last year, but still fell short of its 9.5 percent rise in the previous quarter.

The news sent U.S. stock futures down Tuesday, a day after Wall Street experienced its biggest drop in two weeks.

On Monday, the Dow Jones Industrial Average plummeted 247 points, the Nasdaq fell 53 and the S&P 500 lost 24.

Overseas, European markets are trading lower on Tuesday and Asian ones closed with big losses.

Hong Kong’s Hang Seng took the biggest hit, plunging 4.23 percent, while China's Shanghai Composite dropped 2.33 percent.  Australia’s S&P/ASX 200 fell 2.07 percent, Japan’s Nikkei index lost 1.55 percent, and South Korea’s Kospi shed 1.41 percent.

Copyright 2011 ABC News Radio

Friday
Aug262011

Economic Growth Nears Flatline: Just 1% in Second Quarter

Comstock Images/Thinkstock(WASHINGTON) -- The U.S. Department of Commerce on Friday estimated just a 1 percent upward tick in annual growth during the spring quarter, more evidence that the economic recovery remains slow to nearly none.

The government report shows the economy was barely expanding, even before this month’s stock market plunge. Economists worry that the Wall Street sell-off could cause consumers and business to pull back even more on spending and investment.

For some, Friday’s news is further evidence that the economy could be slipping back into recession, but John Ryding with RDQ Economics says the numbers aren’t so disappointing.

“This report has strong profits numbers and we tend not to go into a recession when corporations are making profits because that's an inducement to expand,” Ryding said.

“If we dig a little deeper and look at the strength of incomes and look at the strength of profits I think we find that the economy, while not strong, is nowhere near as weak as the headline GDP data suggests.”

Copyright 2011 ABC News Radio

Friday
Jul292011

Economic Growth Slows to Weakest Point Since Recession's End

Comstock Images/Thinkstock(WASHINGTON) -- In the first half of 2011 economic growth slowed to its weakest pace since the end of the recession, according to a report released Friday by the Commerce Department's Bureau of Economic Analysis.

The government says the gross domestic product -- which measures the output of goods and services produced in the country -- expanded at an annual rate of 1.3 percent in the second quarter, falling short of what economists had predicted.

First quarter growth was also revised down to just .4 percent.

Copyright 2011 ABC News Radio

Thursday
Apr282011

Gross Domestic Product Slows, Grew at 1.8% Pace in Q1

Comstock Images/Thinkstock(WASHINGTON) -- A new report shows the pace of the economic recovery slowed significantly during the first quarter. The gross domestic product report -- the first of three revisions -- showed the economy growing at a 1.8 percent annual pace from January to March. In the fourth quarter of 2010, the economy was growing at a 3.1 percent pace.

Economists said they expected the slow down, pointing to weather effects and a significant reduction in construction. The report shows the slowdown is a result of a big pullback in government spending, slower spending on construction and by consumers, and an increase in imports.

The second estimate will be out on May 26.

The report is available on the U.S. Commerce Department's website.

Copyright 2011 ABC News Radio

Wednesday
Apr272011

Bernanke Takes Stage, Fed Downgrades GDP and Inflation Forecast

Brendan Smialowski/Getty Images(WASHINGTON) -- As Fed Chairman Ben Bernanke took to the podium Wednesday at the first press briefing the in Fed’s history, the nation’s central bank issued a downgraded economic forecast for the United States in 2011.

According to new numbers released by the Fed, the nation’s overall economy will likely grow slower and consumers will face higher inflation than the Fed anticipated in their January projections.

According to the new Federal Reserve forecast, overall Gross Domestic Product growth will be between 3.1 and 3.3 percent in 2011, lower than the January projection of 3.4-3.9 percent growth. Price inflation will also pick up this year, with prices increasing between 2.1 and 2.8 percent; the January projections were for 1.3-1.7 percent headline inflation.

One positive note to the new Fed forecast -- unemployment will likely average between 8.4 and 8.7 percent for the full year, better than the 8.8-nine percent projection the central bank issued at the beginning of the year.

Copyright 2011 ABC News Radio

Friday
Jan282011

GDP Grew 3.2 Percent in Fourth Quarter

Photo Courtesy - Getty Images(WASHINGTON) -- The U.S. gross domestic product, which measures the output of goods and services produced in the country, grew at an annual rate of 3.2 percent in last year's fourth quarter, the Bureau of Economic Analysis reported Friday.

The new figure marks a 0.6 percent hike from the third quarter of 2010, when the GDP increased 2.6 percent.

Friday's percentage is an advanced estimate of the GDP based on incomplete data, the Bureau said.  A second, more thorough estimate will be released on Feb. 25.

Copyright 2011 ABC News Radio







ABC News Radio