U.S. economy contracts by 0.3%

The third quarter report of U.S. economy indicated a decline in consumer spending and gross domestic product. The second quarter report showed that the economy grew at a rate of 2.8% and the economists were expecting a drop in economy in the quarter.

The economists said that this is one of the fastest decline reported in last 28 years and investment in homes fell in the quarter and incomes fell in the wake of Great Depression. Consumer spending also dropped in the quarter by 3.1%.