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Costco and Target reported sales that were above Wall Street analysts' expectations, while Macy's and Dillard's posted disappointing figures. The average rate on a 30-year mortgage fell to a record low this week, Freddie Mac said, the ninth time that's happened this year. But the cheaper rates haven't done much to lift the depressed housing market. Nearly 7.7 million Americans received unemployment benefits in the week ending Jan. 14, the latest period for which figures are available. That's unchanged from the previous week. The economy's growth rate rose in the final three months of last year, to a 2.8 percent annual rate. That was faster than the 1.8 percent pace in the July-September quarter. But a key reason for the growth was that companies restocked their supplies at a robust pace. Restocking is likely to slow in the first three months of this year, which would lead to weaker growth. Until consumer spending picks up, businesses may be forced to cut back on hiring. But consumers have been weighed down by wages that haven't kept pace with inflation. More jobs and higher pay would invigorate consumer spending. Most economists expected the combination of weaker inventory growth and tepid consumer spending to lead to slower growth in the current January-March quarter. Many are predicting 2 percent annualized growth this quarter.
[Associated
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