U.S. economy slipped 1.6% to start year; return to growth eyed

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U.S. economy slipped 1.6% to start year; return to growth eyed
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The U.S. economy shrank at a 1.6% annual pace in the first three months of the year, the government reported Wednesday in a slight downgrade from its previous estimate for January-March quarter.

The U.S. economy shrank at a 1.6% annual pace in the first three months of the year, the government reported Wednesday

For the full year, the economy is still expected to turn in respectable growth: 2.5%, according to the World Bank That was partly offset by a revision to its calculation of business inventories. Commerce said that reduced restocking of company shelves had shaved less than 0.4 percentage points from first-quarter growth, down from the 1.1 percentage point hit it estimated in May.

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