The U.S. economy shrank at an annual rate of 3.8 percent in the fourth quarter of 2008, the weakest quarterly showing since the first quarter of 1982, the Commerce Department reported Friday.

“This is a continuing disaster for America’s working families,” American President Obama said at the White House yesterday.

The Bureau of Economic Analysis said the fall in GDP was due primarily to weaknesses in exports, personal consumption spending, equipment and software and residential fixed investments.

Personal consumption expenditures fell 3.5% in the quarter. Consumer spending accounts for about 70% of the US economy.

US exports fell 19.7% in Q4, the largest decline since 1974 and more evidence of slowing global demand for US goods and services.

US imports also fell, by 15.7%, which is the biggest drop since 1980.

Meantime Federal regulators closed 3 more banks on Friday due to financial crisis taking total bank closure since September to 31.