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What happened to the rebound? The latest U.S. economic numbers don't look good. First-quarter GDP grew 5.6 percent (slower than April's 5.8 percent forecast). Con-sumers increased their spending by only 3.2 percent (a mere blip, compared with the previous quarter's 6.1). Government spending rose only 5.3 percent instead of the "projected and expected" 7.9 percent. Armed with these figures, economists who had predicted a downturn were quick to hit the optimists with "I told you so's."
But enough with the return-to-recession talk. Federal Re-serve chairman Alan Greenspan has warned all along that this recovery will take time. And no experts predicted any corporate investment upturn this quarter. Which means that consumer and government spending and tax cuts have had to carry the rebound. And in fact, these sectors have fared remarkably well: consumer spending is on the rise, and while it may not have achieved the heights some had hoped, economists agree that those who kept on buying throughout the ...