GDP Decline Highlights US Military Budget Squeeze

Law360, New York (January 30, 2013, 8:59 PM EST) -- Trepidation over automatic federal budget cuts and a short-term decline in military spending drove a contraction in the U.S. economy in the fourth quarter of 2012, according to government contracts experts who expect spending to remain sluggish while sequestration looms.

The Bureau for Economic Analysis reported Wednesday that real U.S. gross domestic product declined by 0.1 percent, the first drop since the recession in 2009. While some signs pointed to continuing recovery in the private sector, including increased spending on personal consumption and housing, declines in...
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