According to the Bureau of Economic Analysis, US gross domestic product – the output of goods and services produced by labor and property located in the United States - contracted for the first time since the 4th quarter in 2007. In the latest quarter, GDP fell 0.3%, after a 2.8% gain in the previous quarter. The number, reported by the Commerce Department, was above estimations, as economists had expected a number closer to -0.5%.

Report Details (via MarketWatch):

Adjusted for inflation, so-called real consumer spending fell 3.1%, the fastest rate decline in 28 years. Spending on durable goods plunged 14.1%, the largest decline in 21 years. Spending on nondurable goods also fell, down 6.4% in the biggest decline seen in 58 years, while spending on services rose 0.6%. Consumer spending subtracted 2.3 percentage points from economic growth.

Business investment fell 1%. Investments in equipment and software dropped 5.5%, the largest decline in six years, but investments in structures rose 7.9%. Business investment subtracted 0.1 of a percentage point from growth.

Investments in housing dropped 19.1%, the 11th consecutive quarterly decline. Housing subtracted 0.7 of a percentage point from growth, while the change in inventories added 0.6 of a point to growth.

Imports fell 1.9%, while exports rose 5.9%. Net exports added 1.1 percentage points to growth.

Government spending increased 5.8%, adding 1.2 percentage points to growth.

GDP has risen 0.8% in the past year.

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