US Economy Falls 0.5% In 4Q -- Most Since 1982

The U.S. economy shrank at the end of 2008 by the most in 26 years, according to a grim report that hints the recession will deepen in 2009.

Gross domestic product fell at a seasonally adjusted 3.8% annual rate October through December, the Commerce Department said in the first estimate of fourth-quarter GDP. Third-quarter GDP fell 0.5%. The back-to-back GDP declines were the first since GDP fell 3.0% in the fourth quarter of 1990 and 2.0% in the first quarter of 1991.

President Barack Obama's administration is pushing for government stimulus of the sickly economy. The U.S. House of Representatives approved a roughly $819 billion economic recovery package Wednesday evening, at the end of Obama's ninth day in office. The Senate must also clear the package.