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The economy is expected to continue a slow rebound.
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The Federal Reserve has highlighted the slow rebound that the housing market is experiencing in several of its recent statements, saying that the ailing market is a persistent overhang on unemployment and GDP growth.
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This is a result of an increase in pressure on these programs, as Americans living longer and baby boomers are beginning to collect, in addition to high energy prices and the slow rebound of the economy.
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At the crossroads of the battered housing market and below-trend levels of consumer spending, it will come down to execution for the home-improvement retailers as housing rises off the bottom and the economy continues its slow rebound.
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This region gets little rain and is slow to rebound from ecological disturbances.
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The slow by steady rebound in housing investment should also contribute to a better fourth quarter.
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Trade expanded in 2011 by 5.0%, a sharp decline from the 2010 rebound of 13.8%, and growth is expected to slow further still to 3.7% in 2012, due to a number of shocks, including the European sovereign debt crisis, oil disruptions, and the Arab spring.
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Most analysts are hesitant to call for anything above a slow crawl to growth in consumer spending this year, but some are projecting solid rebound on holiday spending.
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