Mexican Media Brands
U.S. Economic Growth Slows Sharply in Second Quarter
American's gross domestic output, which expanded at a 2% annual rate in the first three months of this year and 4.1% in last year's fourth quarter, grew at a tepid 1.5% pace from April through June, according to the preliminary estimate from the Dept. of Commerce.
#economics
Share
American's gross domestic output, which expanded at a 2% annual rate in the first three months of this year and 4.1% in last year's fourth quarter, grew at a tepid 1.5% pace from April through June, according to the preliminary estimate from the Dept. of Commerce.
Economists say such slow growth is not enough to sustain a recovery in the job market.
Consumer spending, which accounts for 70% of the economy, rose 1.5% in the second quarter compared to 2.4% in the first quarter. The personal saving rate rose to 4% from 3.6%. The economy was bolstered in the latest quarter by construction growth and annualized increases of 5.3% in exports and 8.5% in business investment.
The Federal Reserve's preferred inflation measure, the core price consumption expenditures index, grew at a 1.8% annual rate. The base PCE index, which includes food an energy prices, rose only 0.7%, chiefly because of easing gasoline prices.
Economists say that the low core rate, which falls short of the Federal Reserve's 2% target, gives the central bank leeway to act to stimulate the economy.
RELATED CONTENT
-
Porsche Doubles EV Target for 2025
Porsche AG says about half the vehicles it sells by 2025 will be equipped with hybrid or all-electric powertrains, twice the ratio it forecast four weeks ago.
-
On Headlights, Tesla's Autopilot, VW's Electric Activities and More
Seeing better when driving at night, understanding the limits of “Autopilot,” Volkswagen’s electric activities, and more.
-
Report Forecasts Huge Economic Upside for Self-Driving EVs
Widespread adoption of autonomous electric vehicles could provide $800 billion in annual social and economic benefits in the U.S. by 2050, according to a new report.