As bad as the initial data on the nation's economic health during the final months of 2008 were, the final numbers were even worse.
The gross domestic product fell at an annual rate of 6.3% during the fourth quarter of last year, compared with a .5% decline during the third quarter, of 2008, the Commerce Department announced today.
The drop, which was .1% higher than the department's original estimate issued last month, was largely fueled by declines in consumer spending, business outlays and both exports and imports.
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Personal consumption expenditures fell 4.3%, compared to a 3.8% decline during the previous quarter. That trend was also reflected in previously released retail sales data which showed that this was the worst holiday season for retailers since the 1980s.
Real gross domestic purchases-purchases by Americans of goods and services wherever they were produced–fell 5.9%, compared with a 1.5% drop in the third quarter.
Business spending fell 21, 1%, compared with a 1.7% drop during the previous three months.
Exports fell 23.6%, compared with a 3% rise during the second quarter.
Imports fell 17.5%, compared with the preliminary estimate of a 16%.decline. During the third quarter they fell 3.5.
Consumers paid less for many products. The price index for gross domestic purchases fell 3.9%, compared with a preliminary estimate of 4.1% decline. The index rose 4.5% during the third quarter. Excluding food and energy, the index rose 1.2%, up from the preliminary estimate of 1.1% and down from a 2.8% increase in the previous quarter
Residential fixed investment, which includes housing spending, fell 22.8%, compared with the preliminary estimate of 22.2%. There was a 6% drop in the third quarter.
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