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Economy Slows Down

7:55 AM MDT | May 16, 2011 | —ARNOLD PEARLMAN

GDP advanced 1.8% in the first quarter, according to the latest estimates, significantly slower than the 3.1% recorded in fourth-quarter 2010 and the slowest rate of growth since the second quarter last year. Consumer spending advanced just 2.7%, after surging 4% in the fourth quarter. A deceleration in expenditures on capital goods, residential structures, and exports also occurred. Government spending declined for the second consecutive quarter, with a particularly steep drop in outlays on national defense. The manufacturing sector, in contrast to the overall...

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