The latest reading on the economy showed that the gross domestic product shrank at a rate of 3.8 percent in the fourth quarter, the worst result since 1982. The slide wasn’t as bad as the nearly 6 percent drop many forecasters had been expecting. But the better-than-expected performance was the result of a build-up of unsold inventories — which means businesses will have to cut production that much further to cope with the rising backlog of unsold goods. The report was just one more indication that as the recession has spilled over into the new year, it may be picking up speed. Read More
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