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EXTENDED SLOWDOWN

1:42 PM MDT | August 9, 2007 | Arnold Pearlman

The economy expanded at an annualized rate of 1.3% in the first quarter of 2007, the slowest rate in four years. Over the past 12 months, GDP has grown at an annualized 2.1%, well below the economy’s long-term potential of about 3.5%, analysts say. The main culprit has been the collapse of the housing market, but there has also been a significant deceleration in the growth of capital spending and of exports, they say. The drop in growth in the first quarter was partially the result of a modest retrenchment by consumers, market sources say. Household...

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