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Recession Fears Grow

11:17 AM MDT | August 19, 2011 | —ARNOLD PEARLMAN

GDP grew 0.4% in the first quarter, significantly less than the initial estimate of 1.9%. Initial second-quarter estimates peg GDP growth at an annualized 1.3%. Consumer spending was stagnant in the second quarter and government spending continued to drop, but there was a solid rebound in business investment. The Fed also revised statistics for the past few years and says the recession was worse than previously stated and the recovery less robust. Profits, however, were revised upward. According to new estimates, operating earnings were 12.6% of GDP in the first...

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