Growth Sputters in the Second Quarter
Posted on Jul 28, 2012
The marginally growing U.S. economy reduced speed in the second quarter of the year after months of lackluster job creation, threatening the financial well-being of ordinary Americans and deepening the challenge for President Obama’s re-election campaign.
Americans simply tightened up the purse strings in the April-June period.
Experts say cuts in government spending also stifled growth, especially at the local level. State and local government spending dropped 2.1 percent during the quarter while federal spending fell 0.4 percent.
—Posted by Alexander Reed Kelly.
The nation’s gross domestic product (GDP) – the broadest measure of the economy – grew at a sluggish 1.5% between April and June, the US commerce department said. The latest figure compares to 2% growth during the prior three months, and 4.1% in the fourth quarter of 2011.
The slowdown came as consumers cut back, local governments cut spending, factories received fewer orders and exports were hit by a global slowdown and a stronger dollar.
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