U.S. economic slide gains speed
The U.S. economy contracted at a staggering 6.2 per cent pace at the end of 2008, the worst showing in a quarter-century, as consumers and businesses ratcheted back spending, plunging the country deeper into recession.
The U.S. Commerce Department report released Friday showed the economy sinking much faster than the 3.8 per cent annualized drop for the October-December quarter first estimated last month. It also was considerably weaker than the 5.4 per cent annualized decline economists expected.
A much sharper cutback in consumer spending — which accounts for about two-thirds of economic activity — along with a bigger drop in U.S. exports sales, and reductions in business spending and inventories all contributed to the largest revision on records dating to 1976.
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