Q4 GDP = -0.1%

A few moments before today’s GDP report, I tweeted that if the number is negative, Twitter would go into complete melt down mode. I was only kidding, but the GDP number was in fact negative. Well, -0.1%. And it was Rick Santelli, CNBC’s in-house scare-monger, that melted down.

As odd as this may sound, the GDP report truly wasn’t that bad. There was a big drop off in military spending. There was also a decline in inventory build-ups which is hardly a bad thing. The numbers “under the hood” were rather decent:

Real personal consumption expenditures increased 2.2 percent in the fourth quarter, compared with an increase of 1.6 percent in the third. Durable goods increased 13.9 percent, compared with an increase of 8.9 percent. Nondurable goods increased 0.4 percent, compared with an increase of 1.2 percent. Services increased 0.9 percent, compared with an increase of 0.6 percent.

Real nonresidential fixed investment increased 8.4 percent in the fourth quarter, in contrast to a decrease of 1.8 percent in the third. Nonresidential structures decreased 1.1 percent; it was unchanged in the third quarter. Equipment and software increased 12.4 percent in the fourth quarter, in contrast to a decrease of 2.6 percent in the third. Real residential fixed investment increased 15.3 percent, compared with an increase of 13.5 percent.

fredgraph01302013a

Posted by on January 30th, 2013 at 9:06 am


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