ECONOMIC GROWTH RATE
IS 2.5 PERCENT IN QUARTERThe economy grew at a 2.5 percent annual rate in the third quarter, the same rate as the second quarter, the Commerce Department said Thursday.
But inflation slowed dramatically in the July-to-September period. The fixed weight deflator, which measures price changes for a constant basket of goods, rose at a 2.9 percent rate, compared with a 5.0 percent rate in the second quarter.
The estimate for gross national product, based on a host of components and adjusted for inflation, was slightly higher than economists expectations for a 2.3 percent growth rate in the third quarter.
WAGE CONTRACTS ALLOW
3.7 PERCENT GAINS IN 1ST YEAR
WASHINGTON - Major collective bargaining agreements in U.S. private non- farm industry so far in 1989 provided wage gains averaging 3.7 percent in the first contract year, the Labor Department said Thursday.
That compares with 2.4 percent gains the last time the same parties bargained - two or three years ago in most cases, Labor said. The new settlements allow a 3.1 percent average annual raise over the life of the contracts, Labor said.
0.4 PERCENT GAIN EXPECTED
IN PERSONAL INCOME
NEW YORK - U.S. personal income is expected to gain 0.4 percent in September, unchanged from August, while personal spending is expected up 0.3 percent, off from August's 0.9 percent advance, according to a survey of economists by Knight-Ridder Financial News.
The Commerce Department was expected to release the data early today.