THE ECONOMY: A Surge Before The Slump?

A Surge Before The Slump?

The U.S. economy's strength is confounding the pessimists. Though many analysts expected the October stock-market crash to bring economic growth to a halt, the Government said last week that during the final three months of 1987, the U.S. economy expanded at a robust 4.2% annual rate. The surge was propelled in part by the falling dollar, which enabled American manufacturers to sell more goods overseas. The volume of exports grew 20% during 1987, while import growth slackened to less than 6%.

Yet hints of a slowdown could be found among last week's statistics. Most ominous was the rapid growth of stockpiled...

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