Contraction not as severe as expected

Preliminary estimates for third quarter GDP growth showed a 0.4% contraction. This was the first in eight years but wasn't as severe as many expected. September economic data began to reflect the impact of the terrorist attacks on the US consumer. Retail sales were 2.4% lower than in August, with clothing stores reporting a 5.9% slump. However, it is too soon to tell whether this is simply the result of the 'CNN effect' ' consumers staying at home to watch the news ' or the beginning of a long-term contraction in consumer spending that could have severe implications on global grow...