GDP -0.14% 4Q Averages Out 3Q “Over-Achievement”

January 30, 2013 - BEA Reports 4th Quarter 2012 GDP Contracting at -0.14% Annual Rate - But Not All is Negative by Rick Davis, Consumer Metrics Institute In their first (or "advance") estimate of the US GDP for the fourth quarter of 2012 the Bureau of Economic Analysis (BEA) found that the economy was shrinking at a -0.14% annualized rate, over 3% worse than the 3.09% growth rate that they recorded for the prior quarter. The contraction was driven primarily by dramatic reversals to the prior one-quarter spikes in government spending and inventory growth, which sharply improved the final headline number for the 3rd quarter. The reversals of those two line items reduced the headline number by over 4%. This report also showed substantial weakening in exports, although that was also offset somewhat by a softening of imports.   Read more »