Worrisome new signs for the economy… it has slipped into reverse, shrinking for the first time since 2009.
FOX News Radio’s Mike Majchrowitz reports from the White House:
It’s like a bucket of cold water splashed on hopes for a warming economy. The U.S. economy shrank in the last four months of last year by an annual rate of .1%.
That’s the first contraction since the recession ended. And it’s a sharp deceleration from the 3.1% growth rate in the previous quarter.
Slower inventory growth and government spending reductions are blamed. Consumer spending, business investment and housing were all up. This will likely intensify the debate over further spending cuts and tax increases.
At the White House, Mike Majchrowitz, FOX News Radio.