In a blow to the Obama administration, the Congressional Budget Office has concluded that the president’s economic stimulus plan created fewer jobs than expected and “crowds out” private investment.

A new report released on Tuesday finds that the American Recovery and Reinvestment Act may have boosted the economy in the short run by sustaining some 700,000 jobs at its peak in 2010, but “will reduce output slightly in the long run — by between 0 and 0.2 percent after 2016.”

The report estimates that the total number of jobs produced by the plan was far fewer than the 3.5 million predicted by the Obama administration during the peak of spending.

CBO estimates that the stimulus is responsible for sustaining between 600,000 to 1.8 million jobs during this quarter, which lowered the nation’s unemployment rate by as much as 1 percent.

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