GDP growth is expected to be reported in the 3% range for the summer 2009 quarter and nearly that high for the current quarter. Credit the fast start to the ramp up of stimulus plan spending, other new federal spending programs and a sharp reduction in the share of goods orders met from accumulated inventory. Reducing inventory is a subtraction from GDP growth. The July return to increasing factory output substitutes for drawing on the surplus inventory throughout the economy to met customer orders.

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