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| Version 0 | Version 1 |
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| US economy suffers sharp nosedive | US economy suffers sharp nosedive |
| (31 minutes later) | |
| The US economy shrank by 6.2% in the last three months of 2008, official figures have shown, a far sharper fall than had previously been reported. | The US economy shrank by 6.2% in the last three months of 2008, official figures have shown, a far sharper fall than had previously been reported. |
| Plunging exports and the biggest fall in consumer spending in 28 years dragged the figure down from the 3.8% estimate the government gave earlier. | Plunging exports and the biggest fall in consumer spending in 28 years dragged the figure down from the 3.8% estimate the government gave earlier. |
| The decline was much worse than analysts had expected. | The decline was much worse than analysts had expected. |
| In 2008 as a whole, the economy grew by 1.1% the Commerce Department said, the slowest pace since 2001. | In 2008 as a whole, the economy grew by 1.1% the Commerce Department said, the slowest pace since 2001. |
| Recession warning | Recession warning |
| Consumer spending, which accounts for about two-thirds of domestic economic activity, fell by a rate of 4.3% in the final quarter - the biggest fall since the second quarter of 1980. This was a revision of the earlier figure of 3.5%. | |
| It shows the weak state of the world's largest economy Matt EsteveTempus Consulting | |
| With rising unemployment, sliding home values, increasing numbers of repossessions and the slumping value of investments, observers say many US consumers are hanging on to whatever disposable cash they have. | |
| Meanwhile, exports - which had until recently been supporting the economy - fell at the sharpest rate since 1970 at an annual rate of 23.6%, down from 19.7%. | |
| Earlier this week, Federal Reserve chief Ben Bernanke warned Congress that without the right policies from the government, the US recession could last into 2010. | Earlier this week, Federal Reserve chief Ben Bernanke warned Congress that without the right policies from the government, the US recession could last into 2010. |
| But he said if the Obama administration and the central bank can restore some measure of financial stability, 2010 could be a year of recovery. | But he said if the Obama administration and the central bank can restore some measure of financial stability, 2010 could be a year of recovery. |
| President Obama recently signed a $787bn (£556m) recovery package of increased government spending and tax cuts, and unveiled a $75bn scheme to stem repossessions. | |
| No good news | |
| The latest GDP figures were "just awful" said Matt Esteve, a currency trader at Tempus Consulting in Washington DC. "It shows the weak state of the world's largest economy." | |
| And Boris Schlossberg, director of currency research at GFT Forex said there was "doom all over". | |
| He predicted that the dollar would not weaken too much against the euro because "there's no good news on the other side of the Atlantic, either". |