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2:30 PM MDT | August 27, 2007 | Rnold Pearlman

The U.S. economy expanded at an annualized rate of 3.4% in the second quarter, compared to a 0.6% advance in the first quarter. Analysts attribute the growth to a “sharp acceleration” in exports accompanied by a decline in imports, a move from inventory liquidation in the previous two quarters to positive expansion in inventories, and a pick-up in business spending. Growth in consumer outlays, however, dropped significantly from an average of 3.2% over the previous four quarters, to 1.1% in the most recent period. Sales of manufactured products, which...

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