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US GDP Shrinks as Consumers Pull Back on Spending

London, Friday, October 31, 2008 ARANCA News Report (www.aranca.com) : Even as the Federal Reserve slashed interest rates by half a percentage point to stave off a potentially deep recession, the US Commerce Department announced on Thursday that the economy shrank in the summer. Data from the Commerce Department revealed that the gross domestic product (GDP) shrank at a 0.3 percent annual rate in the third quarter -the sharpest contraction in seven years.

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