US GDP contracts 1 per cent in 2Q
Fri Aug 28 01:07:50 EST 2009
Thu Aug 27 15:07:50 UTC 2009
WASHINGTON, Aug 27 AP - The government says the economy shrank at an annual rate of 1 per cent in the spring, a better-than-expected showing and more evidence that the recession is drawing to a close.
The Commerce Department's estimate for the change in the gross domestic product was unchanged from the initial figure it released last month. The drop, while representing a record fourth consecutive decline, was far smaller than the previous two quarters. It also was stronger than the 1.5 per cent decline that private economists expected.
The new report found that businesses slashed their inventories more than first reported and cut back more sharply on investment in new plants and equipment. But those reductions were offset by revisions that showed smaller dips in consumer spending, exports and housing construction.
