Mexican Media Brands
U.S. Economy Unexpectedly Slows
America's gross domestic product, which expanded 3.1% in the third quarter of 2012, shrank 0.1% in the final three months of the year, according to a preliminary estimate by the Dept. of Commerce.
#economics
Share
America's gross domestic product, which expanded 3.1% in the third quarter of 2012, shrank 0.1% in the final three months of the year, according to a preliminary estimate by the Dept. of Commerce.
The U.S. economy, which grew 1.8% in 2011, expanded 2.2% in full-year 2012.
Economists opined that the October-December slowdown the first quarterly contraction since mid-2009 was mainly caused by uncertainty about the "fiscal cliff" budget crisis, which was averted temporarily on Jan. 1.
The federal government slashed spending 6.6% in the fourth quarter the biggest drop since 1973 and wary companies let inventories shrink. Those factors offset a 2.2% gain in consumer spending and an 8.4% jump in business investment.
Economists expect the U.S. economy to return to moderate growth in the current quarter, thus avoiding the two consecutive quarters of contraction that would constitute a recession.
But they warn that exports, which fell 5.7% from October through December, are likely to remain a drag on GDP. Shipments are down because of Europe's recession and slowing demand in China and other emerging markets.
RELATED CONTENT
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.