U.S. Economy Shrinks As Consumers Cut Back

The U.S. Commerce Department reported Thursday that the economy contracted at a 0.3% annual rate in the third quarter, the sharpest decline since 2001, as personal consumption fell the most in 28 years. (Economix)

Following the report, San Francisco Federal Reserve President Janet Yellen called the economic developments “deeply worrisome” and cautioned that the “the bottom is not yet in sight” for the housing market.

Sources:

• Economy Shrinks As Consumers Cut Back (Economix)
• Fed’s Yellen: U.S. Economy Contracting Significantly (Reuters)

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• Economists React: GDP Report Shape Of Things To Come? (Real Time Economics)
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• Samwick: Third Quarter GDP (Capital Gains)
• Ritholtz: GDP Negative 0.3% (The Big Picture)