US Economy Expands But Slower Than Projected

The Commerce Department reported today that the US economy expanded by a 2.8 percent annual rate in the third quarter. This was less than the 3.5 percent the government expected and reflects a smaller gain in consumer spending as well as a larger-than-projected trade deficit.

“We expect profits to continue climbing this quarter as GDP rises further,” Joseph Brusuelas, a director at Moody’s Economy.com in West Chester, Pennsylvania, said before the report. “This will add momentum to the recovery by motivating firms to expand and hire again early next year.”

Bloomberg News

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