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Neon Tommy - Annenberg digital news

U.S. Economy Shrinks In 4th Quarter

Amanda Martinez |
January 30, 2013 | 9:03 a.m. PST

Executive Producer

 

The economy shrank for the first time since the recession ended in 2009. (CassadeyFedel/Flickr)
The economy shrank for the first time since the recession ended in 2009. (CassadeyFedel/Flickr)
The U.S. economy unexpectedly shrank in the fourth quarter by 0.1 percent, the first decline since the recession ended three years ago.

According to the LA Times, the GDP contraction revealed greater concerns about prospective tax hikes and federal spending cuts from the fiscal cliff.

Economists predicted a 1 percent growth in the fourth quarter, after growing 3.1 percent in the third quarter from July through September.

A 22.2 percent decline in defense spending largely contributed to the weaker economic output.

Read the full story at the LA Times.

For more of Neon Tommy's coverage on the U.S. economy click here.

Reach Executive Producer Amanda Martinez here.

 



 

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