Econ­omy show­ing signs of weath­er­ing storms

Sum­mer growth a healthy 2.8 per­cent

The Washington Times Daily - - Business - BY PA­TRICE HILL

“Congress punched it in the face in the fourth quar­ter,” he said.

The bet­ter growth seen in the sum­mer also was driven in part by an ac­cu­mu­la­tion of in­ven­to­ries by busi­nesses, so it prob­a­bly over­stated the health of the econ­omy, he said.

“Don’t get too ex­cited ... Ac­tual de­mand for stuff isn’t so strong,” he said, and the rate of con­sumer spend­ing growth, at 1.5 per­cent, was the slow­est in two years.

“The econ­omy tem­po­rar­ily has gained al­ti­tude on too much in­ven­to­ries,” said Sung Won Sohn, at eco­nom­ics pro­fes­sor at Cal­i­for­nia State Univer­sity Chan­nel Is­lands.

“Con­sumer spend­ing, the lion’s share of the econ­omy, slowed as they try to pinch pen­nies and stretch their lim­ited in­come. The hol­i­day shop­ping sea­son could be lack­lus­ter,” he said.

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