GigiBowman
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- Oct 21, 2008
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WRAPUP 4-U.S. economy contracts as consumers retreat
Thu Oct 30, 2008 5:00pm EDT
U.S. economy suffers biggest fall in seven years
* Consumer spending pullback key factor in GDP decline
* Analysts warn contraction to be deep and prolonged (Adds comments by San Francisco Fed president, updates with closing market prices)
By Glenn Somerville
WASHINGTON, Oct 30 (Reuters) - The U.S. economy suffered its sharpest contraction in seven years in the third quarter as consumers cut spending and businesses reduced investment at the onset of what may be a severe and long-lasting recession.
The Commerce Department said on Thursday that U.S. gross domestic product shrank at a 0.3 percent annual rate as the biggest pullback by consumers since 1980 overwhelmed an increase in government spending.
San Francisco Federal Reserve Bank President Janet Yellen called the economy's recent performance "deeply worrisome," and said the downturn was set to worsen.
continued: WRAPUP 4-U.S. economy contracts as consumers retreat | Markets | Bonds News | Reuters
Thu Oct 30, 2008 5:00pm EDT
U.S. economy suffers biggest fall in seven years
* Consumer spending pullback key factor in GDP decline
* Analysts warn contraction to be deep and prolonged (Adds comments by San Francisco Fed president, updates with closing market prices)
By Glenn Somerville
WASHINGTON, Oct 30 (Reuters) - The U.S. economy suffered its sharpest contraction in seven years in the third quarter as consumers cut spending and businesses reduced investment at the onset of what may be a severe and long-lasting recession.
The Commerce Department said on Thursday that U.S. gross domestic product shrank at a 0.3 percent annual rate as the biggest pullback by consumers since 1980 overwhelmed an increase in government spending.
San Francisco Federal Reserve Bank President Janet Yellen called the economy's recent performance "deeply worrisome," and said the downturn was set to worsen.
continued: WRAPUP 4-U.S. economy contracts as consumers retreat | Markets | Bonds News | Reuters