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Growth In Q3 Is Below View But Beats Q2; Midwest Factories Humming.(A)
Byline: ED CARSON
The economy sped up a little to 3.7% annualized growth in the third quarter, but that was not as fast as expected.
The improvement was driven by stronger consumer spending, the Commerce Department said as it supplied fresh data on the economy's condition before voters go to the polls.
Other reports Friday showed Midwest factory activity at its busiest in 16 years as well as moderate labor costs.
Analysts thought third-quarter GDP would grow at a 4.3% annual clip vs. 3.3% in the second period.
"The economy right now is running in the middle lane," said Richard Yamarone, economist with Argus Research. "We're not in the fast lane, but we're not on the shoulder or in the breakdown lane."
Spending accelerated to a 4.6% rate in the quarter from the three-year low of 1.6% posted in the April-through-June stretch.
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