Even with the widely expected deceleration of growth in the current quarter few expect much more than 2% at an annual rate the world's largest economy is still a long way from contracting.

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Much was made of the sharp deceleration of real GDP growth in the second quarter, to 1.7 percent.

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During the fourth quarter of 2012, growth rose after several quarters of deceleration.

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The battle may be more intense than usual this year, with high gas prices and a general economic slowdown pointing to a deceleration from the rate of spending growth in 2005.

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The reason is that China is on a path of deceleration after overheating, all of which requires a scaling down in growth expectations over the next several years.

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Every piece of data covered by the index seemed to come in negative in January, with 13 of the 20 MSAs showing further deceleration in annual growth rates and the 10 and 20-City Composites marking their sixth consecutive month of declines.

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The problem with this, he notes, is that a deceleration in server growth will affect a variety of associated tech sectors, slowing demand for server-related chips, software licenses, networking equipment and storage.

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Despite a deceleration, we believe the trend of faster service sector growth and more balanced regional development will continue.

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