Daily News: January 31, 2013

R-Word for 2013 U.S. Economy is Rebound Not Recession

Bloomberg noted in a commentary on the news that U.S. GDP contracted slightly in the fourth quarter that economists were using the “R” word to mean rebound not recession.

Bloomberg said, according to economists at JPMorgan, Bank of America and Morgan Stanley, that the economy will bounce back in the current quarter after plunging defense spending and dwindling inventory growth swamped gains for consumers and businesses in the final three months of 2012.

Bloomberg noted that the biggest contributions to GDP in the fourth quarter came from consumer spending, which added 1.5%, and business investment, which tacked on 0.8%.

To read the full Bloomberg story, click here.