US economy shrank at 1 percent rate in Q1
The Commerce Department says that the economy contracted at an annual rate of 1 percent in the first quarter, worse than the government's initial estimate a month ago that the economy grew by a barely discernible 0.1 percent in the first quarter. It was the economy's first quarterly decline since a 1.3 percent drop in the first three months of 2011.
This year's dip reflected slower stockpiling by businesses, a cutback in business investment and a wider trade deficit. Economists are looking for a strong rebound in the April-June quarter as the country shakes off the effects of a severe winter.
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