Saturday, November 29, 2008

Economy Worse Than Expected

Tuesday, the government released a triple dose of discouraging data. Over the summer, the economy shrank even more than previously believed, and consumers reduced their spending by the largest amount in 28 years. During the same period, home prices fell to levels not seen since early 2004.

The updated reading on the economy's performance released Tuesday by the Commerce Department, showed the gross domestic product shrank by a 0.5 percent annual rate in the July to September quarter. That was weaker than the 0.3 percent rate of decline first estimated a month ago. It marked the worst showing since the economy contracted at a 1.4 percent pace in the third quarter of 2001. That was when terrorists attacked the U.S. and the nation was suffering through its last recession. Not good at all. is it?

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