US economy contracted in fourth quarter
2013-01-30 16:46:24
The US economy contracted at a rate of 0.1 per cent in the fourth quarter, according to the government's first estimate Wednesday.
But the economy expanded overall a modest 2.2 per cent for the full year in 2012, a gain from 1.8 per cent in 2013, the Commerce Department said.
The fourth quarter estimate was lower than forecast, but came after a strong 3.1 per cent pace in the third quarter.
"The downturn in real GDP in the fourth quarter primarily reflected downturns in private inventory investment, in federal government spending, in exports, and in state and local government spending," the department said.
It stressed that the first estimate of GDP growth is based on incomplete data and is often revised.