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US economy showing signs of recovery

US economy showing signs of recovery article image
The US economy shrank at 1.0 percent annual pace in the second quarter, less than the 1.5 percent decline predicted by US economists. According to the US Commerce Department figures, consumer spending - which accounts for almost 70 percent of US economic activity - fell 1.0 percent, while the housing sector dragged the economy down further, as residential fixed investment fell 22.8 percent. Exports fell 5.0 per cent while imports decreased 15.1 per cent. However the decline was less than the 1.5 percent decline projected by economists in a Bloomberg News survey, with the figures showing an easing of the deep recession that led to a 6.4 percent decline in the first quarter. Senior economist at National Australia Bank, David de Garis, says the figures show the US economy is stabilising, as businesses took steps to rein in production and cut down on inventories.

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