Motor vehicle output added 1.45 percentage points to the third-quarter change in real GDP after adding 0.19 percentage point to the second-quarter change. Final sales of computers subtracted 0.08 percentage point from the third-quarter change in real GDP after subtracting 0.04 percentage point from the second-quarter change.
Since cash-for-clunkers probably moved auto purchases forward, rather than generating actual new demand for autos, this considerably dampens hopes for a "V" shaped recovery. As Reinhart and Rogoff predicted last winter, the economy is probably going to putter along for a while before it generates new jobs and demand.
This article available online at: