Drew139 Wrote:
Jan 30, 2013 7:24 PM
"Real federal government consumption expenditures and gross investment decreased 15.0 percent in the fourth quarter, in contrast to an increase of 9.5 percent in the third. National defense decreased 22.2 percent, in contrast to an increase of 12.9 percent. Nondefense increased 1.4 percent, compared with an increase of 3.0 percent. Real state and local government consumption expenditures and gross investment decreased 0.7 percent, in contrast to an increase of 0.3 percent." http://www.bea.gov/newsreleases/national/gdp/gdpnewsrelease.htm Its about consumption expenditures and gross investment, not spending overall, and it is mostly due to a cut in defense spending as we wind down the wars.