GDP growth beats expectations, still slow
Jeff Horwich: Four times a year, the U.S. Department of Commerce serves up the big number that tells us how much we are producing as a country. U.S. second quarter GDP grew more than many economists had expected. That does not make it good.
Marketplace’s Nancy Marshall-Genzer has more.
Nancy Marshall-Genzer: GDP grew at a rate of 1.5 percent from April to June; that’s the weakest growth rate since last summer. Much of the slowdown was caused by reduced consumer demand. Spending on durable goods like cars was down 1 percent.
David Kelly is chief global strategist for JP Morgan Funds.
David Kelly: There’s a lot of hesitancy in the economy and people are waiting to see. The problem is there’s a lot of confusion from policy makers at both the Federal Reserve and federal government. So there’s a certain lethargy to the economy right now; that’s really what’s keeping it slower than we’d like.
Everybody’s waiting to see if Washington can swerve at the last minute to avoid a fiscal cliff of tax hikes and drastic spending cuts at the beginning of next year. Still, there are few bright spots: Exports are up, and spending on construction is still on the rise.
In Washington, I’m Nancy Marshall-Genzer for Marketplace.
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