LIVE VIDEO: WUSA 9 Tonight    Watch
 

White House: Sandy Partially To Blame For Lack Of Growth

10:47 AM, Jan 30, 2013   |    comments
Debris and destroyed homes line streets in Long Beach, N.Y. Thursday, Nov. 1, 2012. Three days after Sandy slammed the mid-Atlantic and the Northeast, New York and New Jersey struggled to get back on their feet, the U.S. death toll climbed to more than 80, and more than 4.6 million homes and businesses were still without power. (AP Photo/Kathy Kmonicek)
  • Share
  • Print
  • - A A A +
  • FILED UNDER

WASHINGTON (AP) - The White House says Superstorm Sandy is partially to blame for the unexpected contraction of the U.S. economy.

Top White House economist Alan Krueger says the storm, which battered the East Coast, disrupted economic activity and destroyed $44 billion in fixed capital. Krueger also says federal defense spending shrank, in part because of uncertainty over automatic spending cuts that could have kicked in at the start of the year.

President Barack Obama and Congress reached a deal to push off the spending cuts - known as the sequester - for two more months.

The Commerce Department said Wednesday that the economy contracted at an annual rate of 0.1 percent in the fourth quarter. It's the first time the economy shrank since 2009.

Most Watched Videos