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The economy grew at a modest 2.5 percent annual rate in the April-June quarter. Most economists expect growth slowed in the July-September quarter to an annual rate of about 2 percent or less, held back in part by weaker growth in consumer spending. Analysts had thought that consumers would step up spending and help drive faster growth in the final three months of the year. But a partial government shutdown has now lasted a week and will leave hundreds of thousands of federal workers without paychecks. That is likely to further dampen consumer spending and hold back growth in the October-December quarter. The consumer credit report is one of the few government reports issued since the shutdown began. The Fed kept operating because it does not depend on budget appropriations from Congress. The Fed's borrowing report tracks credit card debt, auto loans and student loans but not mortgages, home equity loans or other loans secured by real estate.
[Associated
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