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U.S. economy shrinks 0.1% in fourth quarter

By The Associated Press

This article was published January 30, 2013 at 8:26 a.m.

The U.S. economy unexpectedly shrank for the first time since 2009 in the October through December quarter, hurt by the biggest cut in defense spending in 40 years, fewer exports and sluggish growth in company stockpiles.

The drop in gross domestic product 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.

Read tomorrow's Arkansas Democrat-Gazette for full details.

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