Fourth-Quarter GDP Declines 3.8%

The U.S. economy contracted 3.8% in the fourth quarter, the biggest drop since 1982, though it grew for the year, the Commerce Department said Friday.

The nation’s gross domestic product expanded 1.3% for the full year, Commerce said.

The decline in the gross domestic product was less than the 5.5% contraction forecasted by economists, Bloomberg reported.

Third-quarter GDP fell at a 0.5% annual rate.

Consumer spending, which accounts for more than two-thirds of the economy, fell at a 3.5% annual rate, following a 3.8% downturn in the third quarter.

Friday’s release was the first of three by Commerce, which will revise the figure twice more.