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"However, although private final demand, output, and employment have indeed been
growing for more than a year, the pace of that growth recently appears somewhat less
vigorous than we expected. Notably, since stabilizing in mid-2009, real household
spending in the United States has grown in the range of 1 to 2 percent at annual rates,
a relatively modest pace. Households' caution is understandable. Importantly, the
painfully slow recovery in the labor market has restrained growth in labor income,
raised uncertainty about job security and prospects, and damped confidence."
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