Yes, the sequester is hurting growth

April 26, 2013

The first-quarter GDP report was kind of meh. Though the 2.5 percent growth rate is much stronger than in the last months of 2012 -- when the economy actually contracted, according to initial numbers -- Friday's number fell about a point below analysts' expectations.

What explains this? One of the factors appears to be that the sequester, particularly the defense spending cuts, took a bigger bite out of the economic recovery than anyone expected:

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Neil Irwin · April 26, 2013