WASHINGTON (AP) -- The economy grew at a 2.9 percent annual rate in the spring -- better than first estimated but nowhere near the brisk pace logged in the winter, another sign of slowing business growth. Inflation marched higher.
There's no surprise in this report. Inflation numbers were revised very slightly lower, exports revised up, inventories revised higher. Corporate profits were up 3.2% quarter to quarter but up 20.5% over the last year. This supports the Fed's view that the economy is slowing but not falling into recession. 3% growth, if inflation moderates, is exactly what the Fed wants. We'll have to wait for more data before we can determine if this continues or growth slows even more. Click on the title to read the whole story.