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Economy Slows

2:22 PM MDT | July 25, 2011 | —ARNOLD PEARLMAN

U.S. GDP advanced 1.9% in the first quarter, slightly faster than earlier estimates but below the 3.1% growth rate recorded in fourth-quarter 2010. Growth slowed on deceleration in consumer spending, declines in spending on nonresidential structures, a drop in residential outlays, and the sharp downturn in spending at all levels of government. Corporate profits, however, not only advanced but registered their largest gain since third-quarter 2010. A combination of rising productivity, slow growth in wages, and above-average growth in selling prices led to...

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