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(AP Photo/Elaine Thompson)
(Bloomberg) — The U.S. economy probably contracted even more in the first quarter than currently estimated as spending on health-care services unexpectedly dropped, according to analysts at JPMorgan Chase & Co. and Pierpont Securities LLC.

Quarterly data on services issued today by the Census Bureau showed health-care outlays dropped at a 5.8 percent annualized rate from January through March compared with the government’s current estimate of a 9.7 percent gain, said Daniel Silver, a JPMorgan economist in New York, based on the bank’s own seasonal adjustment. The pullback means gross domestic product shrank at about a 1.6 percent pace in the first three months of the year, according to JPMorgan’s calculations.

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