U.S. economy shrank the end of 2012

[Phillip V]

"The United States economy contracted unexpectedly in the final quarter of 2012... It marked the slowest rate of growth since the second quarter of 2009."

http://www.nytimes.com/2013/01/31/business/economy/us-economy-unexpectedly-contracted-in-fourth-quarter.html

The Labor Department will release its monthly jobs report this Friday, so maybe that will provide more optimistic news. However, home sales dropped in December, and the Jan 1 increase in payroll taxes has caused grumbling among my acquaintances ranging from low-wage earners to the more affluent.

[Faeelin]

Huh. I guess the Republicans shouldn't have demanded we raise the payroll tax.

[Valmy]

The Republicans wanted taxes raised?  Well heck maybe they are prepared to make the tough choices after all.

[Martinus]

Funny that they held presidential elections *before* figures for the end of 2012 were known. Coincidence or just another day in Obama's America? 

[Valmy]

Funny that they held presidential elections *before* figures for the end of 2012 were known. Coincidence or just another day in Obama's America? 

High Treason!  There will be rioting in the streets.

[The Minsky Moment]

The 22.2 percent drop in military spending – the sharpest quarterly drop in more than four decades – along with the drop in inventories and exports overwhelmed more positive indicators in the private sector

The factors here are:
1. Sharp decline in military spending. 
2. Net exports fell possibly because of economic weakness in all of the major US trading partners.  The key sectors hit include food, feed, beverage, and civilian aircraft.  So the drought-plagued harvests and Boeing's recent difficulties may be impactin here.
3.  Inventories fell despite a strong increase in sales - that might suggest that businesses responded to the fiscal cliff fun and games by playing wait and see and drawing down on stocks.  Fixed investment was actually up quite a bit in quarter however so a more optimisitic view is that businesses are clearing out old invetories at the end of the year in anticipation of new capacity coming on line.

[MadImmortalMan]

So we're partway through the first quarter now. If it does it again, we'll be back in recession.

[Admiral Yi]

Huh. I guess the Republicans shouldn't have demanded we raise the payroll tax.

Clearly it was the fair share paid by fat cats and millionaires that pushed us over the edge.

[derspiess]

So we're partway through the first quarter now. If it does it again, we'll be back in recession.

Yeppers.  It probably won't, but people love throwing the word "recession" around so I doubt it will stop them.

[CountDeMoney]

Meh, my economy shrank in the 2nd quarter of 2012.  I am:  US financial indicator.

[crazy canuck]

Ft. McMurray is looking for people.  One employer put it to me this way,  "If they can walk and dont drool much we will hire and train them".

[Barrister]

Ft. McMurray is looking for people.  One employer put it to me this way,  "If they can walk and dont drool much we will hire and train them".

as long as they are willing to work 10 day shifts in remote work camps for 10-12 hours per day outside in the cold.

[crazy canuck]

Ft. McMurray is looking for people.  One employer put it to me this way,  "If they can walk and dont drool much we will hire and train them".

as long as they are willing to work 10 day shifts in remote work camps for 10-12 hours per day outside in the cold.

and make more than 100k per year

[Phillip V]

Ft. McMurray is looking for people.  One employer put it to me this way,  "If they can walk and dont drool much we will hire and train them".

as long as they are willing to work 10 day shifts in remote work camps for 10-12 hours per day outside in the cold.

and make more than 100k per year

[garbon]

Meh, my economy shrank in the 2nd quarter of 2012.  I am:  US financial indicator.

TMI