US President Barack Obama said that US economy would take many more months to fully recover from recession.

A commerce department report on Gross Domestic Product showed that the US economy witnessed the nastiest crash since Great Depression as the economy contracted 1.9% during the first four quarters of recession, starting from Q4 of 2007.

The data compiled by the commerce department revealed that country's GDP has contracted 3.9% during the last year.

In the second quarter of the present year also the US economy shrank by 1%, defying President Obama's recent assurance that the US started seeing the end of the beginning of the recession.

However, the 1% drop in the US GDP was better than many analysts had been projecting and was an improvement from the first quarter when the US economy contracted by 6.4%.

During the previous year Consumer spending diminished by 1.8%, up from the projected 1.5%.

After the GDP report, treasuries soared, while stocks did not show much change. Benchmark 10-year note yields plunged to 3.48% from 3.61%.

The rate of joblessness has been rising.

It may be noted here that earlier, the International Monetary Fund had forecast US GDP to shrink by 2.6% in 2009.