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The BEA final report revised the U.S. GDP growth rate for Q1 2009 to -5.5%. This is better than the 5.7% decline reported in the preliminary report. However, this is still the third declining quarter in a row, and the fourth since the recession began in Q4 2007. The slowdown in Q1 was less than the 6.3% drop in Q4 2008. This is the first time since the Great Depression that GDP fell more than 5% for two quarters in a row. The silver lining is that a large contributor to the decline was a decrease of business inventories. This means that inventories are getting lean, potentially boosting production next quarter if orders hold steady. (Source: GDP News Release)
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