Recession Twice As Bad As Previously Reported
Oh my.
The POR Economy fell twice as fast in the last twelve months than previously reported.
Recession Worse Than Prior Estimates, Revisions Show (Update1)
By Bob Willis
BloombergJuly 31 (Bloomberg)—The first 12 months of the U.S. recession saw the economy shrink more than twice as much as previously estimated, reflecting even bigger declines in consumer spending and housing, revised figures showed.
The world’s largest economy contracted 1.9 percent from the fourth quarter of 2007 to the last three months of 2008, compared with the 0.8 percent drop previously on the books, the Commerce Department said today in Washington.
“The current downturn beginning in 2008 is more pronounced,” Steven Landefeld, director of the Commerce Department’s Bureau of Economic Analysis, said in a press briefing this week. The revisions were in line with past experience in which initial figures tended to underestimate the severity of contractions during their early stages, he said.
Quel surprise.
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