<p>Consumer spending, which in the US represents more than two-thirds of GDP, grew at an annual rate of 2.3 percent in the third quarter, down from 2.4 percent in the first estimate.<br />The estimate Tuesday is the second of the three estimates that the Commerce Department makes on quarterly economic activity and business investment, which was originally estimated to have a 16.3 percent annual growth and has now been downgraded to a growth rate of 14.8 percent.<br /><br />The consumer price index measure of inflation remained basically unchanged in the figures reviewed.<br /><br />But third-quarter advances in retail sales, manufacturing and housing, combined with a reduction in inventories, point to a greater probability that the world's biggest economy will bounce back to a more vigorous growth rate.<br /><br />Among the adverse factors still weighing heavily on the US is the fact that 2 1/2 years after the deepest, most prolonged recession in 80 years, unemployment stands at 9 percent and incomes are stagnant, both impediments to consumer spending. <br /></p>
<p>Consumer spending, which in the US represents more than two-thirds of GDP, grew at an annual rate of 2.3 percent in the third quarter, down from 2.4 percent in the first estimate.<br />The estimate Tuesday is the second of the three estimates that the Commerce Department makes on quarterly economic activity and business investment, which was originally estimated to have a 16.3 percent annual growth and has now been downgraded to a growth rate of 14.8 percent.<br /><br />The consumer price index measure of inflation remained basically unchanged in the figures reviewed.<br /><br />But third-quarter advances in retail sales, manufacturing and housing, combined with a reduction in inventories, point to a greater probability that the world's biggest economy will bounce back to a more vigorous growth rate.<br /><br />Among the adverse factors still weighing heavily on the US is the fact that 2 1/2 years after the deepest, most prolonged recession in 80 years, unemployment stands at 9 percent and incomes are stagnant, both impediments to consumer spending. <br /></p>