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First Quarter GDP Revised Slightly Lower; Austerity Bites

Reuters (05/30/13) Jason Lange

The federal government’s spending cuts had a deeper effect on the economy in the first quarter than initially thought. The U.S. economy grew at a 2.4% annual rate, down a tenth of a point from an earlier estimate, according to updated figures from the U.S. Department of Commerce. Many economists forecast that growth will slow midyear as spending cuts go into effect.