Recovery Loses Speed As Consumers Turn Cautious
The recovery lost momentum in the second quarter as growth slowed to a 2.4 percent pace, its most sluggish showing in nearly a year and too weak to drive down unemployment.
Weaker spending by consumers, less growth coming from companies restocking shrunken stockpiles and a bigger drag from the nation’s trade deficits were the main factors behind the second quarter’s slowdown.
The Commerce Department’s report released Friday shows the economy grew at a 3.7 percent pace in the first three months of this year. That was much better than the 2.7 percent pace estimated just a month ago. Even so, the recovery has been losing power now for two straight quarters, raising concerns about whether it will stall.
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