"...U.S. gross domestic product fell at a less-than-expected 1% annual rate in Q2, the Commerce Department said Friday. But weak consumer spending suggests any economic recovery will be tepid.
Analysts had expected a 1.5% decline in Q2. A jump in government spending and smaller declines in exports, business investment and homebuilding drove the more modest slide.
But consumer spending, which accounts for more than 70% of economic activity, fell at a greater-than-expected 1.2% pace as Americans saved stimulus boosts amid rising unemployment.
"These numbers are consistent with the idea that we're getting closer to a bottom," said Scott Brown, chief economist at Raymond James.
Still, "nobody is really anticipating that this is going to be a strong recovery," he said..."
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