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US economic growth slowed to 1.5 pct. annual rate in Q2 as consumer spending weakened
WASHINGTON (AP) ¯¯¯ The U.S. economy grew at an annual rate of just 1.5 percent from April through June, as Americans cut back sharply on spending. The slowest growth in a year adds to worries that the economy could be stalling three years after the recession ended.
The Commerce Department also says the economy grew a little better than previously thought in the January-March quarter. It raised its estimate to a 2 percent rate, up from 1.9 percent.
Growth at or below 2 percent isn't enough to lower the unemployment rate, which was 8.2 percent last month. And most economists don't expect growth to pick up much in the second half of the year. Europe's financial crisis and a looming budget crisis in the U.S. are expected to slow business investment further.