The US economy unexpectedly contracted in the fourth quarter of last year as businesses scaled back on restocking and government spending plunged.
Gross domestic product fell at a 0.1 percent annual rate, in contrast to the previous quarter when it grew 3.1 percent.
Even though this was the first decline since the 2007-09 recession, there was some good news with a pick-up in consumer spending and a rebound in business investment.
Still for policymakers, like those at the US central bank the Federal Reserve, the contraction could spur fears of a new recession.
The fact that the whole of last year the US economy grew by just 2.2 percent will certainly play into decisions from the two-day Fed meeting just wrapping up.
The report makes it more likely that Fed Chairman Ben Bernanke and the other decision makers will continue stimulating the US economy.
- 1Peugeot Citroen compensates Iran for sanctions prompted pull out
- 2European shares tumble with banks the main focus of concern
- 3Connecting Europe’s #Digitalsinglemarket
- 4To Russia with cash: Chinese tourists offset fall in Western visitors
- 5International Energy Agency says oil glut is poised to worsen
- 1euronews live TV - News | euronews : the latest international news as video on demand
- 2International news | euronews, latest international news
- 3Most Istanbul blast victims ‘were German’, says Turkey
- 4Madrid to appeal Catalan road to independence from Spain
- 5Thousands in Bucharest blame corruption for Friday’s nightclub blaze
- 6Partnering to grow Europe
- 7Moldova: protesters storm Parliament
- 8Hope vs harsh reality: challenges to global education goals in the 21st century
- 9Extras : euronews : the latest international news as video on demand
- 10Norway sends Syrian refugees back to Russia
- 11Merroussis clinches the 33rd Athens Authentic Marathon
- 12‘National’ funeral for Celine Dion’s husband ‘over the top’
- 13Jorge Lorenzo clinches his third MotoGP title in Valencia
- 14Special Reports : euronews : the latest international news as video on demand
- 15Benzema questioned in French sex tape case
- 16latest Learning World - All Programmes | euronews : the latest international news as video on demand
- 17Paris: “I would rather see my brother in prison than in a cemetery”
- 18Brussels remains on high alert: ‘multiple operations underway’ across Belgium
- 19International breaking news | euronews online world breaking news in video
- 20account : euronews : the latest international news as video on demand
latest economy news
French and German finance chiefs discuss economic weakness and eurozone recovery
To Russia with cash: Chinese tourists offset fall in Western visitors
International Energy Agency says oil glut is poised to worsen
European shares tumble with banks the main focus of concern
French central bank forecasts first-quarter growth improving to 0.4%
Wires > Business
- 21:16 CET Europe to call on G20 finance chiefs for urgent action on growth
- 20:50 CET Burberry sues J.C. Penney for trademark infringement
- 20:14 CET Daimler recalls 840,000 vehicles with potential airbag defects
- 20:00 CET As worries mount, European banks face sell-off more savage than…
- 19:54 CET UniCredit’s board backs CEO after reporting surprise profit
- 19:47 CET Viacom CEO rails against ‘naysayers’ as sales miss estimates…
- 19:39 CET European secondary loan prices start to mirror U.S. weakness
- 19:35 CET Insight – Export-hooked Germany rebalances economy – up to a point