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Post by peteetongman on Jun 25, 2014 8:53:03 GMT -5
The U.S. economy shrank at 2.9 percent annual rate in in the first quarter, a far more alarming downward pace than announced in two previous government estimates, according to the Commerce Department. The figure is nearly three times lower than the preliminary estimate of 1 percent released last month, and marks the worst performance for a three-month period since 2009. A still earlier initial estimate, in April, predicted growth of .1 percent for the quarter. The sluggish economy's woes have been widely attributed to an unusually cold winter, but the latest figure - the biggest difference between second and third estimates since 1976 - could show the problems are bigger than that. The Commerce Department said its final revision reflected a weaker-than-expected pace of healthcare spending, which caused a downgrading of the consumer spending estimate. Trade was also a bigger drag on the economy than previously thought, Reuters reported. www.foxnews.com/us/2014/06/25/economy-in-freefall-1q-revision-shows-shrinkage-2/
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