<div style="float: right; margin: 15px 0 20px 20px;"><table border="0" cellspacing="0" cellpadding="0"><tbody><tr><td colspan="2"><a href="http://static6.businessinsider.com/category/chart-of-the-day"> <img src="http://static3.businessinsider.com/image/2237544b39b8324a71969a00/button-more-charts.gif" border="0" alt="button more charts" /></a></td></tr><tr><td><a href="http://www.businessinsider.com/sp-500-january-effect-exceptions-2013-1"><img src="http://static1.businessinsider.com/image/2237544b42b8324a7a969a00/button-chart-prev.gif" border="0" alt="button chart prev" /></a></td><td><a href="http://www.businessinsider.com/stocks-need-bond-market-confirmation-2013-1"><img src="http://static2.businessinsider.com/image/2237544b4db8324a85969a00/button-chart-next.gif" border="0" alt="button chart next" /></a></td></tr></tbody></table></div><p>Why did GDP decline?</p>
<p>Simple, because of a massive decline in <keyword id="6359526" type="COMPANY" weightage="60" keywordseo="Military">military</keyword> spending that's associated with war drawdown (not sequester/budget cuts).</p>
<p>Here's the chart that shows that this quarter's military spending collapsed in a way that it hasn't done in a decade. It shows the sequential change in defense consumption, and as you can see it fell by over $40 billion from the previous quarter.</p>
<p><a href="http://www.businessinsider.com/todays-shock-negative-gdp-report-really-wasnt-that-bad-2013-1"><strong>For more on today's GDP report, see here &gt;</strong></a></p>
<p><div class="image-container click-to-enlarge" style="width:618px"><div class="image"><a title_source="" title_caption="" class="zoomin" href="http://static3.businessinsider.com/image/51098445eab8ea5b5600000a-960/moneygame-cotd-013013.jpg"><span class="click-to-enlarge-icon" title="Click to enlarge"></span><img src="http://static3.businessinsider.com/image/51098445eab8ea5b5600000a-940-705/moneygame-cotd-013013.jpg?maxX=618" border="0" alt="chart of the day shows decline in military spending, january 2013" width="618" /></a></div></div></p>

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CHART OF THE DAY: The Jaw-Dropping Decline In Military Spending That Clubbed GDP

Why did GDP decline? Simple, because of a massive decline in military spending that's associated with war drawdown (not sequester/budget cuts). Here's the chart that shows that this quarter's military spending collapsed in a way that it hasn't done in a decade. It shows the sequential change in defense consumption, and as you can see it fell by over $40 billion from the previous quarter. For more on today's GDP report, see here &gt;

Why did GDP decline? Simple, because of a massive decline in military spending that's associated with war drawdown (not sequester/budget cuts).

CHART OF THE DAY: The Jaw-Dropping Decline In Military Spending That Clubbed GDP

Joe Weisenthal

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