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US feels impact of spending cuts as 2.2% economic growth disappoints

The US economy grew a disappointing 2.2 per cent in the first quarter of this year as inventories piled up and the federal government cut spending.

The annualised growth rate for gross domestic product came in below market expectations of 2.7 per cent and compares with 3 per cent growth in the fourth quarter of last year.

The weak performance did not, however, break a pattern of steady if mediocre expansion in the US, as consumption and investment grow too slowly to make up for cuts in federal spending.

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