United States economy shrinks by 0.1% in last quarter of 2012
Friday, February 1, 2013
The United States economy shrank by 0.1% in the last three months of 2012 according to official statistics released on Wednesday by the . The contraction in the economy comes after growth of 3.1% in the previous quarter (July to September) and is the first contraction since the .
Economic growth is thought to have fallen due to cuts in government spending, including a 22% cut in the defence budget being the largest decline in defence spending since 1972. Economic analysts had expected a 1.1% in growth according to polling conducted by the news agencyand that none of them had predicted a contraction in the economy.
Export levels were at their lowest for almost four years, this may be due to theand a decline in growth in China. However, there were increases in consumer spending and investments which shows that there may be other problems with the economy and that the issues of December did not worry markets too much.
- "US economy shrinks a surprise 0.1% in fourth quarter" — , January 30, 2013
- "US Economy Shrinks For First Time In Three Years" — , January 30, 2013
- "Republicans rip White House over finger pointing in wake of dismal GDP report" — , January 30, 2013
- Jim Puzzanghera. "Economy's slight shrinkage late last year surprises experts" — , January 30, 2013