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Business Spending Drop Limits U.S. Growth to 2.2%

MarketWatch (04/27/12) Greg Robb

The U.S. economy grew more slowly in the first three months of this year, as stronger consumer spending was offset by cutbacks in government spending and business investment. The U.S. Commerce Department reported today that the economy expanded at an annual rate of 2.2% in the January-March quarter, compared with a 3.0% gain in the final quarter of 2011. Economists polled by MarketWatch had expected a stronger 2.7% growth rate.