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U.S. Economy Shrank 6.2% in Fourth Quarter

Article-U.S. Economy Shrank 6.2% in Fourth Quarter

The U.S. economy shrank more than anticipated in the fourth quarter, recent government data shows, as exports plunged and consumers cut spending by the most in more than 28 years. According to the U.S. Commerce Department, gross domestic product fell at an annual rate of 6.2 percent in the October-December quarter. <br /><br />

The U.S. economy shrank more than anticipated in the fourth quarter, recent government data shows, as exports plunged and consumers cut spending by the most in more than 28 years.

According to the U.S. Commerce Department, gross domestic product, which measures the total output of goods and services within U.S. borders, fell at an annual rate of 6.2 percent in the October-December quarter, the deepest slide since the first quarter of 1982.

The goverment estimated the drop in fourth-quarter GDP at 3.8 percent. The weaker GDP estimate reflected downward revisions to inventories and exports by the department.

Source:  Reuters,  U.S. Economy Shrank at 6.4 Percent Rate in Fourth Quarter