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Business spending tightens as fiscal cliff nears

from USA Today

After Friday's report that the economy grew at a 2 percent annual rate in the third quarter, what does the current quarter hold? And how about 2013? The answer depends on who's right about the economy, and especially the so-called "fiscal cliff" looming at year's end. Executives who invest in software, equipment and office space are pulling back, worried about how Washington will settle the standoff over deficit-reducing tax hikes and spending cuts. Consumers, who are spending more on houses and cars, appear to think Washington will reach some agreement, if it's on their minds at all. more


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