GDP Down, Less Than Predicted

The Commerce Department says the country's gross domestic product fell at a seasonally adjusted annual rate of 5.7 percent in the first quarter of 2009. A 6.1 percent GDP drop had been predicted. From the Commerce Department:

The smaller decrease in real GDP in the first quarter than in the fourth reflected a larger decrease in imports, an upturn in PCE (personal consumption
expenditures) for durable goods, and a smaller decrease in PCE for nondurable goods that were partly offset by larger decreases in private inventory investment and in nonresidential structures and a downturn in federal government spending.

Consumer spending, which makes up a significant part of GDP, increased 1.5 percent this quarter, after a 4.3 percent drop in the fourth quarter.

Comments

 

Please keep your community civil. All comments must follow the NPR.org Community rules and terms of use, and will be moderated prior to posting. NPR reserves the right to use the comments we receive, in whole or in part, and to use the commenter's name and location, in any medium. See also the Terms of Use, Privacy Policy and Community FAQ.

Support comes from: