On October 29, 2009 the US Commerce Department announced an estimated growth for the U.S. economy with 3.5% annually in the third quarter. According to the Commerce Department, this growth is the effect of the government stimulus package. The return to growth unofficially ends the longest and deepest recession since the 1930s. http://www.marketwatch.com/story/us-gdp-rises-35-as-stimulus-kicks-in-2009-10-29http://www.latimes.com/business/la-fi-gdp-recession30-2009oct30,0,4048377.story
- As a direct result of the GDP figures, US and European stocks were up, after a four day decline. Dow Jones, S&P 500 and NASDAQ all opened higher. http://www.google.com/hostednews/ap/article/ALeqM5jmT59dgLTTziX4p9X9MRBRpWZGdQD9BKRJNG0
Background
The Gross Domestic Product, or GDP is the total value of goods and services produced in the country. Economists define a recession as a period of more than six months in which the GDP declines. The GDP decline started in fall and winter 2008, when the GDP dropped 6%. In total, the US GDP had dropped for four consecutive quarters.
- Economists are unsure whether the rebound will sustain in Q4 and 2010, and expect a smaller growth in those quarters.http://www.latimes.com/business/la-fi-gdp-recession30-2009oct30,0,4048377.storyhttp://network.nationalpost.com/np/blogs/fpposted/archive/2009/10/29/u-s-reports-q3-gdp-growth-economists-rejoice-sort-of.aspx
