Recession Was Deeper Than Gov't Had Expected

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The economy slowed down in the second quarter of this year, growing at a 2.4 percent annual rate, according to the Commerce Department. That is slightly worse than economists expected.

The economy's decline highlights why the unemployment rate increased to 10.1 percent in October, a 26-year high.

The revisions in gross domestic product, or GDP, now show zero growth in 2008.

The GDP is the broadest gauge of the economy's health. It measures the value of all goods and services - from machinery to manicures - produced in the United States.

A decrease in consumer spending and home building contributed to the downward revisions on the economy.

The government also reported Friday that the economy shrank 2.6 percent in 2009. That was the steepest drop since 1946.

Analysts expect economic growth to stay slow for at least a year, which means unemployment is not expected to fall very much below it's current level of 9.5 percent.

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