GDP in U.S. contracted by 1% in second quarter

08/28/2009 | CNNMoney

The contraction of GDP in the U.S. slowed to 1% in the second quarter, based on revised data from the Commerce Department. Many economists were anticipating a sharper decline. "Consumer spending didn't fall quite as much as the prior estimate, so that means programs like 'Cash for Clunkers' and the tax credit for first-time homebuyers may result in higher demand than previously thought in the coming quarters," said Mark Vitner, an economist at Wachovia.

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