Diminished Returns

the U.S. economy grew 1.8% in the third quarter, the latest GDP estimate. Third-quarter growth initially was calculated at 2.5%, significantly above the 1.3% recorded in the second quarter of the year and 0.4% in the first. The rebound now looks more subdued, particularly with a modest 1.7% expansion in consumer spending. The rebound in final sales still looks healthy, up 3.2%, following a 1.6% increase in the previous three months and no change in the first quarter of 2011. The expansion in corporate earnings has also been revised downward, from a previous...

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