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Growth Takes a Pause

12:49 PM MST | December 14, 2009 | Arnold Pearlman

GDP rose at an annualized rate of 2.8% in the third quarter, according to the most recent estimates. Previous estimates had pegged the quarter’s GDP growth at 3.5%. The manufacturing sector experienced a much steeper decline than the overall economy. Measured from the peak in fourth quarter 2007 to the trough in second quarter 2009, industrial output fell 16.1%, with durables off 22.6% and nondurables down 9%. GDP, in contrast, dropped 3.4% over the same time period. However, the upturn in manufacturing in the third quarter was stronger than in the rest of...

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