U.S. Growth Slows in 2nd Quarter |
| Wall Street Journal - Jul 27, 2012 |
The economy is slowing to a crawl as consumers cut back spending on big-ticket items and businesses curtailed investments, fueling fears that the U.S. could sink to stall-speed this year.
Gross domestic product, the broadest measure of all goods and services produced in the economy, grew at a weak 1.5% annual rate, the Commerce Department said Friday -- a sharp slowing from the first quarter's 2% pace and the fourth quarter's 4.1%.
The slowing economy, along with new government figures showing the recovery has been weaker than previously thought, raises the risk that a financial shock -- an escalation of Europe's economic crisis, say, or next year's scheduled tax increases and spending cuts, the so-called "fiscal cliff" -- could shove the economy back into recession. Weak growth could also prompt Federal Reserve officials to take more steps to boost the economy at upcoming meetings -- especially since there are few signs their efforts have fueled unwanted inflation.
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- Posted: 2012-07-27 12:02:47
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