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U.S. economy grew anemically in third quarter

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The economy grew at a slightly faster pace over the summer as Americans spent a little more freely.

The government reported Friday morning that the economy expanded at a 2-percent annual rate in the July-September quarter. It marked a slight improvement from the feeble 1.7-percent growth in the April-June quarter. Still, the economy isn't growing at a strong enough pace to make a noticeable dent in high unemployment.

Consumers boosted spending at a 2.6-percent pace. That marked the biggest quarterly increase since a 4.1-percent gain at the end of 2006 before the recession hit.

In addition, employment costs posted another modest gain in the July-to-September quarter with compensation for state and local government employees turning in the weakest performance in nearly three decades.

Employment costs for civilian workers rose 0.4 percent in the third quarter and are up just 1.9 percent for the 12 months ending in September, the Labor Department reported Friday. High unemployment following a deep recession continues to depress workers' bargaining power.

State and local government workers, who have been battered by shrinking budgets, fared even worse than employees of private industry. Their compensation was flat in the third quarter and up only 1.7 percent in the past 12 months.

Both were the weakest showings on records that go back 28 years.

The 1.9-percent 12-month rise in compensation for all civilian workers was little changed from a 1.8-percent increase for the 12 months ending in June. Those gains are significantly below the 3.3-percent increase for the 12 months ending in December 2007, the month the recession began.

With more than 8 million jobs lost from December 2007 to December of last year, employees have not had the bargaining power to demand higher wages.

For the third quarter, wages and salaries for civilian workers rose 0.4 percent, matching the second quarter increase, while benefits were up 0.5 percent, also the same as the April-to-June quarter.

Wages and salaries make up 70 percent of employee compensation while benefits, which include health insurance and pensions, make up the other 30 percent.

For state and local workers, the flat reading on total compensation in the third quarter reflected a 0.3-percent drop in wages and salaries and a 0.7-percent rise in benefits.

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  • Stimulus working in spite of GOP
    This is remarkable in light of the GOP organized plan to undermind the economy and make it fail just to get a political advantage in the election.

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  1. If what you stated is true, then this article is entirely inaccurate. "State sells bonds" is same as "State borrows money". Supposedly the company will "pay for them". But since we are paying the company, we are still paying for this road with borrowed money, even though the state has $2 billion in the bank.

  2. Andrew hit the nail on the head. AMTRAK provides terrible service and that is why the state has found a contractor to improve the service. More trips, on-time performance, better times, cleanliness and adequate or better restrooms. WI-FI and food service will also be provided. Transit from outlying areas will also be provided. I wouldn't take it the way it is but with the above services and marketing of the service,ridership will improve and more folks will explore Indy and may even want to move here.

  3. They could take the property using eminent domain and save money by not paying the church or building a soccer field and a new driveway. Ctrwd has monthly meetings open to all customers of the district. The meetings are listed and if the customers really cared that much they would show. Ctrwd works hard in every way they can to make sure the customer is put first. Overflows damage the surrounding environment and cost a lot of money every year. There have been many upgrades done through the years to help not send flow to Carmel. Even with the upgrades ctrwd cannot always keep up. I understand how a storage tank could be an eye sore, but has anyone thought to look at other lift stations or storage tanks. Most lift stations are right in the middle of neighborhoods. Some close to schools and soccer fields, and some right in back yards, or at least next to a back yard. We all have to work together to come up with a proper solution. The proposed solution by ctrwd is the best one offered so far.

  4. Fox has comments from several people that seem to have some inside information. I would refer to their website. Changed my whole opionion of this story.

  5. This place is great! I'm piggy backing and saying the Cobb salad is great. But the ribs are awesome. $6.49 for ribs and 2 sides?! They're delicious. If you work downtown, head over there.

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