GDP (Gross Domestic Product) is a measure of all goods and services produced in the economy. GDP decreased at a 0.7% annual rate from April through June, the Commerce Department said today, revising its earlier estimated 1.0% drop because business spending in the quarter wasn’t as weak as initially thought.

This is good compared to the GDP decline of 5.4% in fourth-quarter 2008 and 6.4% in first-quarter 2009. Economists think the economy expanded modestly from July through September.

All is not rosy today. The Chicago Purchasing Managers Index on Wednesday fell to 46.1 in September rather than rising to the 52 that economists expected. This means that manufacturing industry is weaker than expected. This is why Dow fell down more than 100 points today. I view the market drops like these as opportunities to buy better stocks at better price.

All numbers point to the fact that U.S. recession ended in July. Yesterday, Fed Chairman Ben Bernanke said that the recession is likely over. Unemployment rate is still high, but with all the euphoria about rebound, companies may start their hiring aggressively. We may see the decent employment rate by Q1 2010.

In a related news, Federal Reserve said today that output at the nation’s factories, mines and utilities rose 0.8 percent in August. Economists surveyed by Thomson Reuters expected a 0.6 percent increase. Last month’s gain marked the second straight increase which is another good news in this economy.

Related Link: U.S. Industrial Production better than expected