Economy Likely Shrank at Fastest Clip Since '82

WASHINGTON (AP) - The Commerce Department is set to release a
report Friday that's expected to show the economy shrank at a pace
of 5.4 percent in the October-December period. That's a much faster
descent than the 0.5 percent decline logged in the prior quarter.
If the forecasts are correct, it would be the weakest quarterly
showing in 27 years when the country was in a severe recession.
Economist Richard Yamarone says the fourth-quarter was a
"bloodbath."
A massive pullback by consumers is expected to play a prominent
role in the economy's worsening backslide. They're cutting back on
spending as jobs disappear and major investments -- homes, stocks,
retirement accounts -- tank in value.
Businesses are retrenching, too, as profits shrivel and demand
wanes from customers in the U.S. and overseas.


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Comments are posted from viewers like you and do not always reflect the views of this station.
  • by Ray Location: Hampton on Jan 30, 2009 at 12:59 PM
    Smart people know that an Obama presidency will have disastrous effects on the economy. So they've been pulling back and saving. Change we can believe in!
  • by Anonymous on Jan 30, 2009 at 08:50 AM
    Yea the Dow has been down every day since the socialists liberals has won.

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