The economy shrank for the first time since the recession ended in 2009. (CassadeyFedel/Flickr)

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.

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