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It shrank at a 6.9 percent rate the next quarter.
The economy shrank at an annual rate of 1.3% in the second quarter.
In the fourth quarter, government shrank at an annual rate of 4.5 percent.
The United States economy shrank at an annual rate of 1percentt in that period.
A survey of purchasing managers may show manufacturing shrank at the slowest pace in 10 months.
Real output grew at just about the ideal pace, even as residential investment shrank at an eye-popping clip.
In the final three months of 2011, GDP shrank at a 2.3% annual pace, significantly worse than expected.
China's exports fell 15% year-on-year in March and its imports shrank at their fastest rate since May 2009.
In a sign that domestic demand is also faltering, new orders, which include domestic orders, shrank at a faster pace.
That number has now been revised down America's economy shrank at a 6.2% annual pace in the fourth quarter.
The Commerce Department reported that the economy shrank at an annual rate of 0.4percentt in the third quarter.
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