U.S. Economy Contracted in 1991 - January 1992

The government reported that the U.S. economy contracted in 1991, for the first time in 9 years. The Labor Dept., reported, January 9, that the producer price index for finished goods had edged downward by 0.1 percent in 1991, the first decline in wholesale prices in 5 years. The department reported, January 10, that unemployment stood in December at 7.1 percent, the highest in more than 5 years. The department said, January 16, that consumer prices had risen 3.1 percent in 1991, the lowest annual increase since 1986. The Commerce Dept. reported, January 17, that the U.S. trade deficit narrowed to $3.57B in November, the smallest in 9 years. The U.S. gross domestic product contracted 0.7 percent (adjusting for inflation) in 1991, the department announced, January 29, and this was the first decline since 1982. The department reported, January 31, that the leading economic indicators fell 0.3 percent in December, to their lowest level since June 1991.