GDP Report: U.S. Economy Contracts in the Fourth Quarter of 2012 - Jan. 30, 2013
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.