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Title: Recession in U.S. Was Even Worse Than Estimated, Revisions Show
Source:
Bloomberg
URL Source: http://www.bloomberg.com/news/2010- ... ed-revisions-to-data-show.html
Published: Jul 30, 2010
Author: Bloomberg
Post Date: 2010-07-30 09:05:40 by go65
Keywords: None
Views: 56678
Comments: 96
The worst U.S. recession since the 1930s was even deeper than previously estimated, reflecting bigger slumps in consumer spending and housing, according to revised figures. The world’s largest economy shrank 4.1 percent from the fourth quarter of 2007 to the second quarter of 2009, compared with the 3.7 percent drop previously on the books, the Commerce Department said today in Washington. Household spending fell 1.2 percent in 2009, twice as much as previously projected and the biggest decline since 1942. “We do tend to get bigger revisions at turning points in the economy,” Steven Landefeld, director of the Commerce Department’s Bureau of Economic Analysis, said in a press conference this week. On the more positive side, “in the past, we’ve tended to undershoot the recovery” as well, he said. The data better explain why the jobless rate doubled, reaching a 26-year high of 10.1 percent in October, and has been slow to subside. The government also boosted personal income levels for each of the past three years, propelling the savings rate higher and signaling households are further along the process of repairing finances. The rebound from the recession has been more subdued in the last six months of 2009, as the economy grew at an average 3.3 annual pace from July 2009 through December, instead of the 3.9 percent previously projected. Lehman Collapse The worst quarter of the current economic slump is now the final three months of 2008, in the immediate aftermath of the collapse of Lehman Brothers Holdings Inc., rather than the first quarter of 2009. GDP shrank at a 6.8 percent pace from October to December 2008, exceeding the prior estimate of 5.4 percent, making it the deepest quarterly drop since 1980. The new data showed the peak of the last expansion occurred in the fourth quarter of 2007 rather than the second quarter of 2008. The figures are more in sync with the recession chronology prescribed by the National Bureau of Economic Research, the accepted arbiter of U.S. business cycles. The Cambridge, Massachusetts-based private group determined the slump began in December 2007, and has yet to announce when it ended. Consumer purchases, which account for 70 percent of the economy, were cut for each of the past three years, with the biggest reduction taking place last year. Less spending on services than previously estimated, including financial services and auto repair, was responsible for the change. Services Revised Data on services, which make up almost 90 percent of the economy, are less timely than figures on manufacturing and are therefore subject to larger revisions, the BEA’s Landefeld said in the press conference. Efforts are under way that will make it possible for the government to measure consumer spending at almost all service industries by 2013, said Landefeld. Starting this year, coverage will improve to about 39 percent from 19 percent in prior years. Personal income was revised up by $18.2 billion in 2007, by $152.3 billion in 2008, and by $155.9 billion last year, the report showed. Part of the reason for the improvement was that corporate dividends didn’t plunge as much as previously estimated. Disposable income, or the money left over after taxes, grew 1.5 percent a year on average during from 2007 through 2009, compared with a prior projection of 1.2 percent. More Savings Higher incomes and less spending meant bigger savings as a proportion of disposable income, the revisions showed. The savings rate reached 7.2 percent in the second quarter of 2009, the highest since 1992. Residential construction fell at a 22 percent annual pace during the 2007-2009 period, one percentage point more than previously reported for what was already the worst housing slump since the Great Depression. The government revised pre-tax corporate profits down for each of the three years. The biggest change was a $97.6 billion reduction, or 7.2 percent cut, in 2008. The drop was mainly among financial institutions, indicating the financial crisis was more severe than previously estimated. Price measures including the Federal Reserve’s preferred inflation gauge -- which tracks consumer spending and excludes food and fuel -- were little changed during the 2007 to 2009 timeframe, the new figures showed. The revisions are part of the government’s annual updates derived from broader, more complete, surveys. The Commerce Department also reported today that the economy grew at a 2.4 percent annual rate from April through June following a 3.7 percent pace of expansion in the first quarter that was previously reported as a 2.7 percent gain.
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#1. To: All (#0)
Posted already but with a slightly modified title...[snicker]
usually the site software is pretty good at catching duplicates, unless of course folks modify titles ;-)
10 bucks and my left nut says yours stays and mine doesn't...
:-)
aka loser has been on your case lately. I think someone(s) been coaching him.
"Lets [sic] rent a room." ~ Jethro Tull to Rotara
Nah, more like deeply repressed feelings.
You can keep chanting yer mantra that "It's Bush's fault, it's Bush's fault", but you know full well the economic downturn should rightfully be blamed on the Pelosi/Reid-led Congress of 2007-2008. RATS purposely talked down the Bush economy and instituted damaging legislation in their EEEVIL--and ultimately successful--Jihad fer Power!! And the braindead Obamabot RAT-MORONS cheered him oin every step of the way... Ain't U proud of yerselves?! Sheeesh...MUD "Devolve Power Outta the Federal Leviathan and Back to the States, On the other hand Republicans have been modeling positive, confidence boosting, responsibility taking behavior - not.
Our resident Zerobots when Il Douche is grabbing even more power
------------------------------------------------------------------------------- Meet the new boss The last gasp of a dying Republic is a "living, breathing Constitution."
We're now calling this a Depression. Words America will never hear.
No argument there, ma'am...Dubyuh ultimately signed whatever KRAP Pelosi/Reid put into law (I don't believe the RATS passed anything significant over Bush's veto, did they??) and I hold Dubyuh personally-responsible fer hiring Hank Paulson and then letting Paulson drive the American economy over the cliff with his Keynesian solutions to our economy that was already over-burdened with outta control Fed spending (authorized by Bush!!) This economic malaise can be laid directly of the feet of BOTH the RATS and the Milquetoast Moderate RINOS, but we gotta at least agree that our economic woes are a direct result of misguided DeeCee intervention in the free market system, right? Regards...MUD
"Devolve Power Outta the Federal Leviathan and Back to the States, Wrong.
Weanie RINO-bastards like Lindsey Grahamnesty piss me off even more than the RAT-bastards becuz their gutlessness undermines everything the ReaganConservatives are trying to implement. Lindsey the Metrosexual Gamecock is just one in a long line of self-interested RINO idiots like Bobdole, RINO Jawn Warner, and Maverick John McCain who have permanently-stained the image of the Republican Party in the minds of a large segment of the electorate...MUD
"Devolve Power Outta the Federal Leviathan and Back to the States, So, you wanna pay a bunch of overpriced DeeCee RATS to tell us how to live our lives?! Brilliant plan, comrade...MUD
"Devolve Power Outta the Federal Leviathan and Back to the States, If we had gotten rid of welfare two decades ago we would be sitting on a pile of surplus.
Someone told me that he couldn't understand how I could be a Christian because I don't let anyone tell me what to do.
While you're busy resenting the poor, the top 10% are making off with the loot.
God said if you don't work you don't eat. You said you're a christian.
That's an absolute bald faced lie.
war you are the forum spinner and liar. It is an opinion. If those people had been forced to work they would not have been sucking the govt tit. They would have been filling it back up with the taxes they paid.
Over the past 30 years what has unemployment averaged? For a good portion of the last three decades people who WANTED work couldn't find it. Your statement has no basis in fact whatsoever.
Fuck you, asswipe.
Taking money from one person and giving it to someone else is stealing.
Jesus said a lot about caring for the poor, but I don't recall that He blamed them for their economic condition.
No. Fuck You war. Cat got your tongue?
He said if you don't work you don't eat. I have nothing against poor people. Sometimes I feel poor. There are many millions of people who milk the system so they can sit around all day long. That is the people I am talking about. If they didn't tax us so much we would spend money in the economy and that would provide jobs for people who want to work. Welfare has made many of our people like zoo animals.
And yet Jesus told the Pharisees to pay their taxes without one word about who the collected taxes benefited.
Goldi, you're supposed to present some modicum of fairness to the forum.
"Lets [sic] rent a room." ~ Jethro Tull to Rotara
No he didn't. He said if you are caesars then by all means give your money to caesar. Are you caesars or Gods? God also gave out the legitimate functions of govt. Redistribution wasn't one of them.
start here mama
Goldi, did you just do one of your stealth bans?
"Lets [sic] rent a room." ~ Jethro Tull to Rotara
In a sermon on judgment, a minister said if you knew all the circumstances of a person's life, you might just marvel at how well they were doing rather than judge how far short they fall.
Thou shall not steal.
You gonna watch the video when you get a chance? I think you will learn something. We can all learn something.
What Bible are you reading from?
Give unto caesar what is caesars. Is your labor caesars?
I'm not your mama, and I'm off to a meeting. Later days dude.
Have a good day mom. And do take a look at the video I provided you. Then you will understand where I am coming from. Then you can tell me where I and Pastor Butch are wrong.
Do we have another Junior Goldi here? Tull just couldn't stand it that Stone let him post here and I knew that Junior Goldi would eventually take the easy way out and buckle under the pressure.
"See in my line of work, you got to keep repeating things over and over and over again for the truth to sink in, to kind of catapult the propaganda." --- George W. Bush (Rochester NY, 5-24-2005)
Comments (41 - 96) not displayed.
Top • Page Up • Full Thread • Page Down • Bottom/LatestThe worst quarter of the current economic slump is now the final three months of 2008
Being a Republicans means you get to choose your own reality
#2. To: go65 (#1)
(Edited)
#3. To: war (#2)
Posted already but with a slightly modified title...[snicker]
Being a Republicans means you get to choose your own reality
#4. To: go65 (#3)
#5. To: war (#4)
10 bucks and my left nut says yours stays and mine doesn't...
Being a Republicans means you get to choose your own reality
#6. To: war (#4)
#7. To: Fred Mertz (#6)
#8. To: go65, war, nolu_chan, Dr. Skippy, Brian S (#1)
Localities, and Individuals as Prescribed in the US Constitution."
#9. To: Mudboy Slim (#8)
You can keep chanting yer mantra that "It's Bush's fault, it's Bush's fault", but you know full well the economic downturn should rightfully be blamed on the Pelosi/Reid-led Congress of 2007-2008. RATS purposely talked down the Bush economy...
#10. To: Mudboy Slim, war, Freddie, bartcop (#8)
Same as the old boss
#11. To: lucysmom (#9)
Title: Recession in U.S. Was Even Worse Than Estimated, Revisions Show
#12. To: lucysmom (#9)
Localities, and Individuals as Prescribed in the US Constitution."
#13. To: Mudboy Slim (#12)
...we gotta at least agree that our economic woes are a direct result of misguided DeeCee intervention in the free market system, right?
#14. To: Ignore Amos (#10)
Localities, and Individuals as Prescribed in the US Constitution."
#15. To: lucysmom (#13)
Localities, and Individuals as Prescribed in the US Constitution."
#16. To: lucysmom (#13)
#17. To: Mudboy Slim (#15)
So, you wanna pay a bunch of overpriced DeeCee RATS to tell us how to live our lives?!
#18. To: A K A Stone (#16)
If we had gotten rid of welfare two decades ago we would be sitting on a pile of surplus.
#19. To: lucysmom (#18)
#20. To: A K A Stone (#16)
(Edited)
#21. To: war (#20)
#22. To: A K A Stone (#21)
#23. To: A K A Stone (#21)
you are the forum spinner and liar
#24. To: war (#22)
#25. To: A K A Stone (#19)
God said if you don't work you don't eat.
#26. To: war (#23)
(Edited)
#27. To: lucysmom (#25)
#28. To: A K A Stone (#24)
Taking money from one person and giving it to someone else is stealing.
#29. To: A K A Stone (#26)
#30. To: lucysmom (#28)
And yet Jesus told the Pharisees to pay their taxes without one word about who the collected taxes benefited.
#31. To: lucysmom (#28)
#32. To: A K A Stone (#26)
Cat got your tongue?
#33. To: A K A Stone (#27)
There are many millions of people who milk the system so they can sit around all day long. That is the people I am talking about. If they didn't tax us so much we would spend money in the economy and that would provide jobs for people who want to work. Welfare has made many of our people like zoo animals.
#34. To: lucysmom (#33)
In a sermon on judgment, a minister said if you knew all the circumstances of a person's life, you might just marvel at how well they were doing rather than judge how far short they fall.
#35. To: lucysmom (#33)
#36. To: A K A Stone (#30)
He said if you are caesars then by all means give your money to caesar.
#37. To: lucysmom (#36)
#38. To: A K A Stone (#31)
#39. To: lucysmom (#38)
#40. To: Fred Mertz (#29)
Goldi, you're supposed to present some modicum of fairness to the forum.
.
.
.
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