Economic statistics released Friday offered the clearest sign yet that the recovery in the United States had slowed to a crawl. The government lowered its estimate of economic growth in the second quarter to an annual rate of 1.6 percent, down from an initial estimate of 2.4 percent issued last month.It must stink to be running for national office as a Democrat. Of course, the Republicans shouldn't be smiling -- their wonderful stewardship of the economy means they don't deserve to be considered reasonable alternatives.
The revision is a significant slowdown from the annual rate of 3.7 percent in the first quarter and 5 percent in the last three months of 2009.
The news follows dismal statistics this week on July home sales and factory orders. Economists are now concerned that the outlook for job creation, which has been spluttering all summer, could deteriorate further.
Because forecasters had expected an even worse growth estimate, the markets reacted positively in the first few minutes, as traders awaited a policy speech later on Friday morning from the chairman of the Federal Reserve, Ben S. Bernanke.
Friday, August 27, 2010
Growth is shrinking!
From the New York Times: