Marketplace   Menu Guide   Complete Pages      
butler eagle
Site last updated: Thursday, August 21, 2014 Bookmark our site!
Local PennsylvaniaNationalInternationalNews Extras  
Published: January 29, 2013 print this article Print save this article Save email this article Email ENLARGE TEXT increase font decrease font

Economy shrinks for first time in 3 years



WASHINGTON — The U.S. economy unexpectedly shrank from October through December for the first time since 2009, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.
The Commerce Department said this morning that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. That was a sharp slowdown from the 3.1 percent growth rate in the July-September quarter.
Economists said the drop in gross domestic product wasn’t as bleak as it looked. The weakness was mainly the result of one-time factors. Government spending cuts and slower inventory growth, which can be volatile, subtracted a combined 2.6 percentage points from GDP.
But the fact that the economy shrank at all, combined with much lower consumer confidence reported Tuesday, could raise fears about the economy’s durability in 2013. That’s because deep government spending cuts will automatically slash domestic and defense programs starting in March unless Congress reaches a deal to avert them.
And Americans are coming to grips with an increase in Social Security taxes that leaves them with less take-home pay.





Back
Comments
Order Photos!
 
MORE NEWS HEADLINES
arrow TOMORROW'S HEADLINES
arrow AG relates stories from his past to reassure people of Ferguson
arrow Ferguson death seen as U.S. tipping point
arrow SV teachers welcome members of military
 
MOST READ ARTICLES
arrow Fatal crash caused by driver running red light
arrow At least 1 injured in 2-car crash on Rt. 8 at Clearview Mall
arrow Coroner’s office investigates crash death of Cranberry Township woman
arrow Police: Fatal accident could have been caused by medical condition