Economy Enjoyed a Summer Sprint, but Mortgage Crisis Expected to Slow Pace in Final Quarter
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The economy sprinted ahead at its fastest pace in four years during the summer, but it is expected to limp through the final three months of this year.
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U.S. consumer confidence retreated in  August while Chicago-area business activity slowed, according  to reports on Tuesday that added to worries the economy's patch  of slow growth may last beyond the summer.
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The US economy saw limited growth from mid July, says the Federal Reserve in its Beige Book survey.
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WASHINGTON ---- The economy snapped out of a sluggish spell and grew at a faster--than--expected 3.5 percent pace in the final quarter of 2006 as consumers increased spending despite a painful housing slump.
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Personal income and consumer spending jumped more than expected in July while one measure of inflation remained tame -- positive economic news amid continued problems in the real estate industry and rising home loan default rates.
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The double whammy of a worsening housing slump and a credit crunch is punching the economy in its gut. That's likely to mean a period of slower activity in the months ahead.
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U.S. consumer confidence retreated in August while Chicago-area business activity slowed, according to reports on Tuesday that added to worries the economy's patch of slow growth may last beyond the summer.
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The US economy grew at its fastest rate in one and a half years in the summer, a government report says.
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ASHINGTON, Sept. 10 (Bloomberg News) â Consumers borrowed less in July than in June, the Federal Reserve reported on Monday.
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Growth in the manufacturing sector slowed in August while construction spending dropped sharply in July, indicating turmoil in the housing and financial markets could be spilling over to the broader economy.
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Business & money: Â· US economy cools with housing market problemsÂ· Bank rates expected to go in opposite directions
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The economy limped ahead at just a 0.7 percent pace in the first quarter, the slowest in more than four years. Some businesses clamped down on spending, given the uncertainties about the severity of the housing slump.
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Most parts of the country saw modest economic growth in the past month, although there were pockets of sluggishness as businesses continued to cope with fallout from the troubled housing and automotive industries.
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There's momentum ahead, despite this quarter's soft numbers.
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Consumers undeterred by escalating credit problems and a weakening housing market went on a back-to-school buying spree last month, helping many retailers rebound from July's disappointing sales. But analysts are still worried that economic concerns might curtail shopping in the critical months ahead.
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Growth in business activity in the   U.S. Midwest slowed slightly in August, a report showed on   Thursday, but the data may signal the economy is in recession.
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Since late summer, the United States economy has demonstrated an enduring power to surprise. And not for the better.