Check Out The Stunning Fall In Government Spending That Crushed GDP

Why did GDP fall in Q4?

Blame lower government spending, specifically military spending. Basically, this was military drawdown.

From the report:

Real federal government consumption expenditures and gross investment decreased 15.0 per cent in the fourth quarter, in contrast to an increase of 9.5 per cent in the third.  National defence decreased 22.2 per cent, in contrast to an increase of 12.9 per cent.  Nondefense increased 1.4 per cent, compared with an increase of 3.0 per cent.  Real state and local government consumption expenditures and gross investment decreased 0.7 per cent, in contrast to an increase of 0.3 per cent.

Click here for more on the full report >

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