“GDP falls for 4 straight quarters, the first time that has happened since 1947″

That is a true statement that puts this decline into a correct perspective.

“WASHINGTON (Reuters) - The deepest U.S. recession since the Great Depression showed signs of easing in the second quarter, buttressing hopes for a second-half recovery, though it may be anemic as consumers are still strapped for cash.

Gross domestic product, which measures total goods and services output within U.S. borders, fell at a 1.0 percent annual rate in the second quarter, the Commerce Department said on Friday, after tumbling 6.4 percent in the January-March quarter, the biggest decline since early 1982.

Analysts who had expected a decline in second-quarter GDP of around 1.5 percent said the report, which showed a moderating pace of decline in key areas such as business investment and exports, provided the clearest evidence yet that the 19-month-old recession was almost over.

“The recession is entering its final hours. Today’s report shows those green shoots are starting to grow again, and the economy is finally moving down the road to recovery,” said Chris Rupkey, chief financial economist at Bank of Tokyo/Mitsubishi UFJ in New York.“

It will be a recovery from a low point. The International Monetary Fund in its annual report on the U.S. economy said the recession seemed to be ending but cautioned recovery would be slow.

On a year-over-year basis, second quarter GDP declined a record 3.9 percent. Previously, the government said GDP had fallen at a 5.5 percent annual rate in the first quarter but it revised that to a steeper fall.

Including the second-quarter contraction, GDP has fallen for four straight quarters — the first time that has happened since records were started in 1947.

http://www.reuters.com/article/newsOne/idUSTRE56U1I220090731

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