Economy in Worst Fall Since '82

Output Sank 6.2% Last Quarter; Plunging Trade, Investment Signal Trouble Ahead

The U.S. economy deteriorated far more than previously thought in the fourth quarter, according to new revisions of government data, casting fresh doubt about the chances of a recovery this year.

With falloffs in consumer spending and exports, gross domestic product declined at a 6.2% annual rate in the fourth quarter of 2008, according to a Commerce Department report Friday. The agency's first estimate for GDP, reported in January, was for a 3.8% ... Full Story »

Posted by Fabrice Florin

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Review

Dale Penn
3.8
by Dale Penn - Feb. 28, 2009

A dismal if factual report on the state of the economy, this article provides factual evidence to support its title both in the narrative of the report and the interactive graphs provided. Where the article moves into speculation about a future recovery, it is nicely balanced with different points of view, however it provides little to support anyone's speculation, and doesn't go into much depth in this area.

Still, Ms. Romer strikes an optimistic tone about the prospects for a turnaround in the economy later this year. The Obama administration Thursday offered economic projections in its budget that were rosier than most private-sector forecasts. Defending the projections, Ms. Romer said a turnaround is likely this year as the federal fiscal stimulus package works its way through the economy. Some economists have a much dimmer view, arguing the best the stimulus can do is prevent a recession from turning into depression. “There’s no way we are going to be able to avert a deep and long recession,” says Joshua Shapiro, chief U.S. economist at research firm MFR, Inc. Conrad DeQuadros, senior economist at RDQ Economics in New York, forecasts “a fairly lackluster recovery in 2010,” and projects that unemployment will graze double digits from its current 7.6%.

This section of the article provides bare bones information. References or links to the projections referenced would have been nice for those interested in going deeper.

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