Evidence so far indicates that fourth quarter GDP growth will be even slower than the third quarter’s 1.9% gain.
While consumers are likely to spend enough to make it a pretty good holiday sales season for retailers, businesses remain cautious, cutting back their spending on equipment and adding to inventories at a reduced pace. The labor strike at General Motors, though now resolved, forced production cutbacks in both September and October. Manufacturing activity in general is being dragged down by poor prospects for the global economy.
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