Close X Cookies are necessary for the proper functioning of 24hGold.com. By continuing your navigation on our website, you are accepting the use of cookies.
To learn more about cookies ...
EnglishFrench
Gold & Silver Prices in
In the same category

U.S. Economy Unexpectedly Contracts in Q4

IMG Auteur
Published : January 30th, 2013
235 words - Reading time : less than a minute
( 0 vote, 0/5 )
Print article
  Article Comments Comment this article Rating All Articles  
0
Send
0
comment
Our Newsletter...
FOLLOW : Growth Recession
Category : Opinions and Analysis

The Commerce Department reported that plunging defense spending and falling inventories combined to cause the U.S. economy to shrink for the first time since the recession ended in 2009 as GDP growth fell at an annual rate of 0.1 percent in the fourth quarter. For all of 2012, the economy expanded a modest 2.2 percent.

This is the first of three estimates for GDP growth for Q4 and it’s important to remember that there are often large revisions to the data between the first and second estimates, particularly for inventories. Nonetheless, this is not what markets or analysts were expecting as a Reuters poll of economists saw the growth rate coming in at 1.1 percent with not a single forecaster predicting a contraction.

24hGold - U.S. Economy Unexpec...

Consumer spending contributed 1.52 percentage points to the growth rate but this was nearly offset by a negative contribution of 1.27 percentage points for the change in private inventories, part of gross private domestic investment, as manufacturers slowed production of goods.

Net exports subtracted 0.25 percentage points from growth, however, the biggest single reason for the overall contraction was a a sharp reduction in government spending that subtracted 1.33 percentage points from the growth rate, a whopping 1.27 percentage points coming from a dramatic decline in defense spending.

This comes at a time when it is increasingly likely that “sequestration” in early March will cause defense spending to be reduced even further.

<< Previous article
Rate : Average note :0 (0 vote)
>> Next article
Tim Iacono is the founder of Iacono Research, a subscription service providing market commentary and investment advisory services specializing in commodity based investing.
WebsiteSubscribe to his services
Comments closed
Latest comment posted for this article
Be the first to comment
Add your comment
Top articles
Latest Comments
Silver Demand Ready To Explode
10 DecS W.
Same old, same old story from AH. Silver is going to go to the moon. Buy it while you still can. So you can make a lot of dollars when ...
Gold coins: the United Kingdom´s...
08 Decflup
I think that Estonia is VAT free for legal tender silver.
The Deepening Deep State
10 DecJim C.
Kunstler wasn't concerned about 'The Deep State' when he voted for Obama...since Obama's agenda seemed to coincide initially with Kunstler's own. ...
Documents Prove Massive Rigging ...
09 DecThe Recusant
Yes, yes. the PMs are manipulated. Perhaps some bank will have its wrist slapped. Then everything will return to normal. More price fixing and bank...
Silver Demand Ready To Explode
09 DecThe Recusant
Sorry Andy, but I don't believe in Santa anymore either. Believing silver "must" explode is no different than the market "must" implode. I've been ...
Guest Post: How to Trigger a Sil...
09 DecThe Recusant
Well, there you have it. Blatant manipulation and cover up by the CFTC and DOJ. So, what else is new? Let's see what Trump will do to stop this! [s...
Indian demonetization effect: 15...
09 DecJ T.
From reading the comments at the end of the article mentioned above in economictimes.indiatimes, the people who read it, if they actually did, are ...
India Confiscates Gold, Even Jew...
09 DecJ T.
Hopefully the naive, or ignorant, or worse, willfully ignorant, who have swallowed (once again) the MOP's lie (that's the Ministry of Propaganda......
Most commented articlesFavoritesMore...
World PM Newsflow
ALL
GOLD
SILVER
PGM & DIAMONDS
OIL & GAS
OTHER METALS