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Growth Moderates

7:26 AM MDT | May 11, 2012 | —Arnold Pearlman

U.S. GDP grew at a 2.2% annual rate in the first quarter of 2012, well below the 3% rate recorded in the final quarter of 2011. On the positive side, consumer spending rose at a 2.9% rate, up from 2.1% in the previous three months and the most rapid increase since second-quarter 2010. Expenditures on durables continued at double digit rates, fueled by strong growth in auto sales; and there was a significant uptick in spending on consumer services. Outlays on new homes, including remodeling of existing residences, soared at a 19.1% rate, up from an equally strong...

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