U.S. GDP Grows 1.5 Percent In Second Quarter
The Washington Times said it is estimated that the slight growth seen in the second quarter is the weakest quarterly GDP growth since last fall. Consumer spending makes up 70 percent of economic activity, and according to the report, consumer spending "slowed to an annualized rate of 1.5 percent, down from 2.4 percent in the first three months of the year."
The unemployment rate was 8.2 percent last month and a Growth rate below 2 percent is not enough to lower the unemployment rate. According to the Times, "few analysts expect the economy to gain momentum in the second half of the year, as concern about debt problems in Europe and the fiscal cliff-a series of tax increases and spending cuts due to take effect in Jaunary unless policy makers find an alternative-dampen confidence."