WASHINGTON — The third-quarter gross domestic product report was as disappointing as advertised, showing real growth at negative 0.3%. The slowing reflected weakness in consumption and investment, as well as the effects of Hurricane Ike on the Gulf Coast and a slowing in deliveries due to the Boeing Corp. strike. Growth appears poised to slip further in coming periods.
The last time GDP fell was the fourth quarter of 2007, when it dropped 0.2%, and the last time it posted a larger dip was the recession period in the third quarter of 2001, when if fell 1.4%.
The Commerce Department said it could not quantify the effects of Hurricane Ike on GDP, but that there were disruptions to the energy industry, especially in inventories, and personal income was lowered by about $2.8 billion as a result.
Real final sales were off 0.8%, and the last time these were lower was a 1.7% slide in the first quarter of 1991, also a recessionary period.
— Market News International