Shrinkage: US Economy Declined By -0.1% In Q4 by Tyler Durden
The Bear on Feb 01 2013 at 7:00 am | Filed under: Economy
A stunner out of the BEA which just reported a Q4 GDP of -0.1% that was leaps and bounds below the 1.1% estimate, and a plunge from Q3′s 3.1%.
The factors: Private Inventories, Exports and Government Expenditures all of which contracted, by -1.27%, -0.81%, and -1.33%. The silver lining was in Personal Consumption Expenditures which added 1.52% to the negative print, most of it however driven by a surge in spending ahead of the fiscal cliff.
Ironically, this was the biggest government-driven detraction from growth since Q1 2011, when GDP led to a -1.49% cut in the GDP, same in Q4 when government spending on defense fell the most since 1972. The solution is simple: print moar drones. Enter Mali. And since everything is now AMZN-ing, we can’t wait for the spin that the GDP’s margins were actually better than expected, leading to a 200 point surge in the DJIA.
SideBear: What is another word for economic stagnation…Obamanomics.
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