OMFG shrinkage! From Associated Press: The US 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 drop occurred despite stronger consumer spending and business investment.
The Commerce Department said Wednesday 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….
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