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Growth Accelerates

11:16 AM MST | November 21, 2011 | —Arnold Pearlman

The U.S. economy grew 2.5% in the third quarter, up from 1.3% in the second quarter and 0.4% in the first. Consumer spending, which had slowed to 0.7% in the second quarter, grew 2.4%, with rebounds in outlays on durables and services. Nonresidential investment expanded 16.3%, on top of a 10.3% rise in the previous three months, and the foreign trade sector contributed positively to growth for the second consecutive quarter. A slowdown in government spending continues to exercise a significant dampening effect on the economy. Spending by all levels of government...

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