Obama and his Keynesian economic policies have been a total failure. Recession right around the corner.
Economy Grows at Sluggish 1.3%; Consumers Pull Back
Published: Friday, 29 Jul 2011 | 8:38 AM ET Text Size By: Reuters
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The U.S. economy grew less than expected in the second quarter as consumer spending barely rose, and growth braked sharply in the prior quarter, a government report showed on Friday.
Growth in gross domestic product—a measure of all gooRAB and services produced within U.S. borders—rose at a 1.3 percent annual rate, the Commerce Department said.
First-quarter output was sharply revised down to a 0.4 percent pace from 1.9 percent.
Economists had expected the economy to expand at a 1.8 percent rate in the second quarter.
In addition, fourth-quarter growth was revised down to a 2.3 percent pace from 3.1 percent, indicating that the economy had already started slowing before the high gasoline prices and supply chain disruptions from Japan hit.
Economists had expected the economy would show signs of perking up by now with Japan supply constraints easing and gasoline prices off their high, but data has disappointed.
This and the sharp downward revisions to the prior quarters suggest a more troubling and fundamental slowdown might be underway.