During the April-June quarter, businesses increased their spending 4.6 percent after cutting by the same amount in the January-March period. And spending on home construction grew 13.4 percent, in line with the previous quarter. At the same time, the federal government cut spending only 1.5 percent after slashing it 8.4 percent in the first quarter. And state and local governments spent more for the first time in a year. Still, government cutbacks have weighed heavily on the economy the past 12 months. Over the past four quarters, the economy has grown at just a 1.4 percent annual rate. But if you exclude federal, state and local governments, the private sector has expanded at a much stronger 2.3 percent rate. The �ongoing fiscal drag is masking private sector health,� said Joseph LaVorgna, an economist at Deutsche Bank, said. The weaker growth in consumer spending last quarter was significant because consumers account for about 70 percent of the economy.
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That�s up from zero in the spring of 2012 and from 30 percent in the January-March quarter of this year. CEO Mark Zuckerberg said last week that the company has �made good progress growing our community, deepening engagement and delivering strong financial results, especially on mobile.� Still, Facebook has room to grow. Research firm eMarketer expects Facebook to increase its mobile advertising revenue more than fourfold to more than $2 billion this year. This would give the Menlo Park, California, company a 13 percent share of the global mobile ad market, up from about 5 percent last year. Facebook is currently No. 2 in mobile ads, well behind Google.
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