As per the latest report by government United States real Gross Domestic Product shrunk by 0.3 percent in July-September period signaling a recession. This is the worst drop after 2001.

Analysts believe that US will report negative GDP growth for another 2-3 quarters. If economy shrinks in two consecutive quarters then it is called a recession.

Democratic candidate Barack Obama blamed George Bush's policies for the drop in GDP.

Also spending in non-durable goods like food dropped at the sharpest rate since late 1950.