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
-
Ford’s $42 Billion Cash Cow
F-Series pickups generate about 30% of the carmaker’s revenue. The tally is about twice as much as what McDonald’s pulls in.
-
On Lincoln-Shinola, Euro EV Sales, Engineered Carbon, and more
On a Lincoln-Shinola concept, Euro EV sales, engineered carbon for fuel cells, a thermal sensor for ADAS, battery analytics, and measuring vehicle performance in use with big data
-
On Urban Transport, the Jeep Grand Wagoneer, Lamborghini and more
Why electric pods may be the future of urban transport, the amazing Jeep Grand Wagoneer, Lamborghini is a green pioneer, LMC on capacity utilization, an aluminum study gives the nod to. . .aluminum, and why McLaren is working with TUMI.