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Economy Levels Off

7:39 AM MDT | August 21, 2009 | ARNOLD PEARLMAN

GDP fell an annualized 1% during the second quarter, according to early government estimates, a mild decline compared with the 6.4% drop in the first quarter and the 5.4% drop in fourth quarter 2008. Analysts say the economy benefited from a rebound in government spending, particularly federal outlays on both national defense and non-defense products and services during the second quarter. A smaller trade deficit, as imports shrank at a faster rate than exports, a slower decline in new home construction, and a substantially smaller drop-off in business...

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