Post by The Great Aztec Joe on Aug 27, 2010 5:10:14 GMT -8
WASHINGTON (AP) -- The economy grew at a much slower pace this spring than previously estimated, mostly due to the largest surge in imports in 26 years and a slower buildup in inventories.
The nation's gross domestic product -- the broadest measure of the economy's output -- grew at a 1.6 percent annual rate in the April-to-June period, the Commerce Department said Friday. That's down from an initial estimate of 2.4 percent last month and much slower than the first quarter's 3.7 percent pace. Many economists had expected a sharper drop.
The widening trade deficit subtracted nearly 3.4 percentage points from second quarter growth, the largest hit from a trade imbalance since 1947, the government said.
The report confirms the economy has lost significant momentum in recent months. Most analysts expect the nation's GDP will continue to grow at a similarly weak pace in the current July-to-September quarter and for the rest of this year.
finance.yahoo.com/news/Economy-slows-to-16-percent-apf-1166859770.html?x=0&sec=topStories&pos=main&asset=89daaeae8b2467f80a3cdc6e6392489a&ccode=
The nation's gross domestic product -- the broadest measure of the economy's output -- grew at a 1.6 percent annual rate in the April-to-June period, the Commerce Department said Friday. That's down from an initial estimate of 2.4 percent last month and much slower than the first quarter's 3.7 percent pace. Many economists had expected a sharper drop.
The widening trade deficit subtracted nearly 3.4 percentage points from second quarter growth, the largest hit from a trade imbalance since 1947, the government said.
The report confirms the economy has lost significant momentum in recent months. Most analysts expect the nation's GDP will continue to grow at a similarly weak pace in the current July-to-September quarter and for the rest of this year.
finance.yahoo.com/news/Economy-slows-to-16-percent-apf-1166859770.html?x=0&sec=topStories&pos=main&asset=89daaeae8b2467f80a3cdc6e6392489a&ccode=
