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GDP Slumps

8:27 AM MDT | September 17, 2010 | Arnold Pearlman

GDP grew about 1.6% in the second quarter, according to the most recent estimates, down considerably from the 3.7% expansion posted in the first quarter. The slowdown was due to a stronger-than-expected surge in imports, coupled with less inventory investment, analysts say. On the positive side, second-quarter consumer spending grew 2%, compared with 1.6% in the prior quarter, while nonresidential fixed investment rose from 17% to 17.5%. Second-quarter profits continued to rise rapidly, although at a slower pace than in the first quarter. Operating earnings...

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