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GDP Contraction Slows for Second Quarter

The U.S. economy appears to be contracting at a much slower pace than it has previously, according to a report from the Department of Commerce. The gross domestic product (GDP) fell 1.0 percent from April to June, far less than the 6.4 percent decline in the first quarter and less than the average industry prediction of 1.5 percent. Commerce attributes the reduced contraction to smaller declines in business spending and exports, as well as less liquidation of inventories. Analysts are taking the figures as a signal that an economic turnaround is underway, although enthusiasm is cautious. "We're going from recession to recovery, but at least early on, it's not going to feel like one," says Mark Zandi of Moody's, quoted in The New York Times. "For economists, this is a seminal part of the business cycle, but for most Americans, it won't mean much."

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