Economy's rebound not as strong as first thought
WASHINGTON. - The economy grew at a 2.8 percent pace last quarter, as the recovery got off to a slower start than first thought.
The government's new reading on gross domestic product wasn't as energetic as the 3.5 percent growth rate for the July-September period estimated just a month ago.
The main factors behind the downgrade: consumers didn't spend as much, commercial construction was weaker and the nation's trade deficit was more of a drag on growth. Businesses also trimmed more of their stockpiles, another restraining factor.
The new reading was a tad weaker than the 2.9 percent growth rate economists expected.
After the release of the report, stock futures gave up their modest gains from earlier in the morning.
Fed Officials warn that jobless rates will stay high
(November 10, 2009)
Don't look for any easing of unemployment over the next several years.
That assessment comes from Federal Reserve officials, who warn that the jobless rate will probably remain high because the economic recovery won't be strong enough to spur a lot of hiring.
The comments from the presidents of regional Fed banks in San Francisco and Atlanta are the first public words from Fed officials since the government reported last week that the jobless rate is now 10.2 percent.
The Fed officials warn that rising unemployment could put a crimp on consumer activity, and restrain the recovery.