News

U.S. Economy Shrinks Slightly

NEW YORK (CNNMoney) — Uncle Sam cut spending in the fourth quarter of 2012, causing the U.S. economy to contract for the first time in more than three years.

Gross domestic product, the broadest measure of the nation’s economic growth, contracted at an annual rate of 0.1% from October to December, the Commerce Department said Wednesday. It was the first quarterly contraction since the second quarter of 2009, amid the Great Recession.

The contraction was due to cuts in federal spending, primarily on defense. Defense spending contracted at a 22% annual rate.

Weaker U.S. exports and a contraction in spending on commercial buildings also weighed on economic growth, more than canceling out strong consumer spending.

Consumer spending makes up the largest part of the U.S. economy and accelerated at a 2.2% annual rate in the fourth quarter.

VIEW & ADD COMMENTS

1 Comment to “U.S. Economy Shrinks Slightly”

    Anonymous said:
    January 30, 2013 at 7:28 PM

    Hello, my name is Mary. Would you like to be friends?

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Connecting to %s

Advertisement

Advertisement