Economy grows at medium pace

So sayeth Reuters


Revised data from the Commerce Department released with the second-quarter figures on Thursday showed national output shrank in the final quarter of 2007 before barely edging up at the start of this year.

“With the boost from the tax rebates now fading, lower interest rates having little positive impact and signs emerging that overseas demand is weakening, we expect the economy to contract outright in the second half of this year,” said Paul Ashworth, senior U.S. economist for Capital Economics of London.

Of course, if exports dip, that is because the dollar is strengthening… which means the worst is over.

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