The Fragile Roots of Productivity Growth

How fast is the US economy now growing? Smart investors are now betting that the most recent economic data will show an annual GDP growth rate of 3% for the second quarter of 2003. They are also betting that the current third quarter may well show a growth rate as high as 5% per year. July saw American industrial production jump by half a percent, while Intel, the big microprocessor maker, is reporting very strong growth in demand for its key products, suggesting that business investment spending is finally accelerating.