The Economy Only Grew 1.2% in the Second Quarter

[jamesbond]

The U.S. economy expanded less than forecast in the second quarter after a weaker start to the year than previously estimated as companies slimmed down inventories and remained wary of investing amid shaky global demand.

Gross domestic product rose at a 1.2 percent annualized rate after a 0.8 percent advance the prior quarter, Commerce Department figures showed Friday in Washington. The median forecast of economists surveyed by Bloomberg called for a 2.5 percent second-quarter increase.

The report raises the risk to the outlook at a time Federal Reserve policy makers are looking for sustained improvement. While consumers were resilient last quarter, businesses were cautious -- cutting back on investment and aggressively reducing stockpiles amid weak global markets, heightened uncertainty and the lingering drag from a stronger dollar.

“We’re just muddling through," said Joseph LaVorgna, chief U.S. economist at Deutsche Bank Securities Inc. in New York.

The easing in growth continued into the first half of this year. The year-over-year pace for the first quarter of 2016 was revised down to 1.6 percent from 2.1 percent, the revisions showed. That revised trajectory has implications for Fed officials, as they’re faced with an expansion that has been steadily losing steam.

http://www.bloomberg.com/news/articles/ ... nd-quarter

[Moretorque]

The economy is not growing, it's contracting...

[Ghost]

.

[gnosis]

And that "growth" is probably bullshit like "financial services" and more student loans.

It's sad how many Americans are buried in student loans. How many cultures parasitize the young like ours does?

[jamesbond]

And that "growth" is probably bullshit like "financial services" and more student loans.

It's sad how many Americans are buried in student loans. How many cultures parasitize the young like ours does?

The average college graduate has $30,000 in student loans when they graduate! Also, 50% of college graduates are either unemployed or underemployed. Think how long it will take them to pay off their student loans.

[jamesbond]

This just out today.

WASHINGTON, (Reuters) - U.S. economic growth was a bit more sluggish than initially thought in the second quarter as businesses aggressively ran down stocks of unsold goods, offsetting a spurt in consumer spending.

Gross domestic product expanded at a 1.1 percent annual rate, the Commerce Department said on Friday in its second estimate of GDP. That was slightly down from the 1.2 percent rate reported last month.

The revision also reflected more imports than previously estimated as well as weak spending by state and local governments. The economy grew at a 0.8 percent pace in the first quarter. It grew 1.0 percent in the first half of 2016.

The revision to second-quarter GDP growth was in line with economists' expectations. The economy has struggled to regain momentum since output started slowing in the last six months of 2015, which puts it in danger of stalling.

https://ca.news.yahoo.com/u-second-quar ... iness.html