US economy contracts 0.3 percent in third quarter

By DPA,

Washington : The US economy contracted by 0.3 percent in the third quarter of the year, the sharpest decline in seven years amid a global financial crisis that has blocked credit access and severely depressed spending, the US government said Thursday.

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The government’s initial estimate puts the country on track for a recession in the second half of the year. A recession is rated as two straight contracting quarters. The number was slightly better than expected: Economists had predicted a 0.5-percent drop, according to Bloomberg News.