Highlights:

Based on early estimates, economic activity closed 2012 on a mixed note. Though gross domestic product grew at 2.2 percent for the whole year, the fourth quarter results were disappointing, showing a 0.1 percent decline. A large 22.2 percent cut in defense spending at the federal level, coming after a surprisingly high defense spending increase in the prior quarter, and a large negative change in private business inventories were key reasons for the mild contraction in the economy.