U.S. Recession May Have Started at End of 2007
By Timothy R. Homan
July 31 (Bloomberg) -- The U.S. economy may have tipped into a recession in the last three months of 2007 as consumer spending slowed more than previously estimated and the housing slump worsened, revised government figures showed.
The world's largest economy contracted at a 0.2 percent annual pace in the fourth quarter of last year compared with a previously reported 0.6 percent gain, the Commerce Department said today in Washington. Growth for the period from 2005 through 2007 was also trimmed.
The revisions now reinforce measures such as employment and production that already signaled the economy was shrinking. The government also said incomes grew less than previously thought, raising the risk that consumer spending will again stumble after getting a temporary boost from the tax rebates last quarter.
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U.S. Economy Grew Less Than Forecast Last Quarter (Update2)
By Bob Willis
July 31 (Bloomberg) -- The U.S. economy expanded less than forecast in the second quarter as the drag from housing and rising unemployment blunted the impact of federal tax rebates.
The economy grew at a 1.9 percent annualized rate after expanding 0.9 percent in the first quarter, the Commerce Department said in Washington. The report also showed a recession may have begun in the final three months of 2007, as gross domestic product was revised to show a contraction in the period.
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Bad sign for market to come, as indication this is the worst credit crisis recession would not be expected so soon. From Last 3 month of 2007 to now is approximately 11mths which indicate it would not likely to recover soon from now. Now worldwide economy faced threats to both growth and inflation. Tough to deal with. My take tommorrow market will fall to even out pass 2 days gains.
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