In the first quarter 2009, U.S. gross domestic product (GDP) declined a seasonally-adjusted 6.4 percent (adjusted on July 31, 2009, from the June 26, 2009, reading of -5.5 percent, which was a revision from the May 29, 2009, reading of -5.7 percent, which had been a revision from the initial reading of -6.1 percent), following a 6.3 percent drop in the previous quarter. The numbers prove the severity of the recession caused by the credit crunch. However, for the “glass-half-full” crowd, real personal consumption rose 2.2 percent in 1Q 2009 after falling 4.3 percent in the fourth quarter of 2008. While we still should not count on consumers resuming the wild pre-credit crunch spending spree, it does appear that the decline in consumer spending has bottomed out. Thus, corporate earnings, at least in consumer sectors, may have seen the worst, and should start looking up. Keep in mind, though, there are looking up from a deep hole. While stock prices should bounce back from being grossly oversold, the upside is still limited.
Anyone interested in the full release on 1Q 2009 GDP should click on the page on the menu bar at the top of this blog labeled “Economic Growth Statistics.” In addition, other pages have been created to maintain up-to-date statistics on all things economic. If anyone has suggestions for other information they would like to see updated regularly, please drop me an email at rawfinance@gmail.com. Otherwise, please enjoy the new pages.
Gregg D. Killoren
victoria1014
