Real GDP grew by 1.7 percent at an annual rate during the first three quarters of 2012, following a 2.0 percent increase over the four quarters of 2011. The economy continues to face a number of headwinds, including a pickup in energy prices, the effect of severe drought conditions on agricultural output, and the ongoing sovereign debt crisis in Europe. Consumer spending rose at a 2.0 percent annual rate from the end of 2011 through the third quarter of 2012, in line with the pace recorded during the four quarters of 2011. Growth of residential investment picked up smartly to a 14.4 percent pace from 3.9 percent ... (full story)