GDP drop steepest since 2001

The U.S. real gross domestic product declined to a revised 0.5% in the third quarter, marking its biggest drop in seven years, the Department of Commerce reported today. In the third quarter of 2001, the GDP declined 1.4%. The revised numbers follow a 2.8% GDP growth in the second quarter. The decrease was attributed primarily to negative contributions in personal-consumption expenditures, residential fixed investments, equipment and software. The government's personal-consumption price index decreased 3.7% from the June-September period, compared with 1.2% growth in the second quarter. The index, excluding food and energy, increased 3%, an improvement from a 2.2% rise in the second quarter.