US shrinks 6.3 percent during Q4

Bloomberg

Gross domestic product contracted at a 6.3 percent annual rate from October to December, the weakest since 1982, the U.S. Commerce Department said yesterday. Profits dropped 16.5 percent from the prior quarter, the most since 1953.

The U.S. economy has lost more than 1.2 million jobs this year as companies trim costs and rebuild profits. Recent reports showing a rebound in sales indicate last quarter's slump may give way to smaller declines in growth. A let-up in the recession would set the stage for President Barack Obama's stimulus plan and Federal Reserve measures to take hold in the second half.

The drop in GDP, the sum of all goods and services produced, was larger than the 6.2 percent decline estimated by the Commerce Department last month.

The median forecast of 69 economists in the Bloomberg survey called for a 6.6 percent decrease, and estimates ranged from declines of 7.1 percent to 6 percent.