Economy demonstrates slow growth during the second quarter

The economy grew significantly slower than previously reported during the second quarter, according to However, the numbers for consumer spending were higher than previously reported.

Gross domestic product (GDP) growth increased at an annual rate of 1 percent during the second quarter, which is a revision from the previous estimate of 1.3 percent. Economists had expected the latest reading to be revised down to 1.1 percent.

The revised GDP estimate confirmed that growth almost stalled during the first six months of this year. During the first quarter, the economy only grew 0.4 percent.

The U.S. is watching for a recession after share prices recently plummeted in the stock market following the U.S.' downgraded credit rating. Although this has caused a dive in consumer and business sentiment, data such as industrial production, retail sales and employment reportedly could help the economy avoid an outright contraction.

Date : 8/29/2011