WASHINGTON — The Commerce Department said today that its initial estimate that the gross domestic product would fall 0.5% during the third quarter, compared with a 2.8% increase during the second three months of 2008, was accurate.
The drop was largely fueled by declines in consumer spending and a decreased rate of growth in exports, the department said.
Personal consumption expenditures fell 3.8%, compared to a 1.2% rise during the second quarter.
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Exports rose 3.0%, compared with a 12.3% rise during the second quarter.
Imports fell 3.5%. During the second quarter they fell 7.3%.
Consumers also paid more for many products. The price index for gross domestic purchases rose 4.5%, compared with a 4.2% rise during the second quarter. Excluding food and energy, the index rose 3.0%.
Residential fixed investment, which includes housing spending, fell 16%, compared with the initial projection of a 17.6% drop. Such spending fell 13.3% in the second quarter. Business outlays fell 1.5%, compared with 2.5% in the second quarter.
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