Economic Growth Slows to 1.6%; Trade Gap Widens
Goverment Sharply Reduces Estimate of GDP Growth in the Second Quarter; Q3 Expected to Be Just as Bad
(AP) The government has sharply cut its estimate of U.S. economic growth in the second quarter, adding fuel to worries about the barely-moving economy.
The Commerce Department revised its estimate of gross domestic product growth in the April-to-June period to a 1.6 percent annual rate from 2.4 percent.
That's a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate, and economists say it's a taste of the weakness to come. The current quarter isn't expected to be much better, with many economists forecasting growth of only 1.7 percent. Still, many economists had expected a sharper drop in the second-quarter reading.