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The Profit Paradox

July 12, 2010 | Arnold Pearlman

According to the latest revision by the Bureau of Economic Analysis, the economy grew at a 2.7% annual rate in the second quarter. This is a substantial 0.5% reduction from the initial calculation of 3.2%. The primary cause of the lower estimate is a reduction in the growth of consumer spending from an earlier 3.6% to a current 3%. At the same time, inventory accumulation is now stronger than originally envisioned. Consequently, the growth in final sales of domestically produced goods and services is now estimated to be a weak 0.8%, half of the original 1.6% and...

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