GDP Shows Major Decline

The Bureau of Economic Analysis has announced that real GDP in the fourth quarter of 2008 declined by 3.2%. This number will be revised many times, so nothing should be etched in stone.

Nevertheless, the declines showed expected trends as the capital goods sector headed the decline. Motor vehicle output subtracted 2.04 percentage points from the fourth-quarter change in real GDP after contributing 0.16 of a percentage point to the third-quarter change.

Decreases in equipment and software also showed major declines.Corporate investments in computers, office equipment, machinery and other capital goods fell by an annualized 19.1 percent in the fourth quarter