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Leadership
US economic growth slows to 2.4pc in Q2
30.07.2010
US economic growth slowed to 2.4pc during the second quarter of this year, official data released today has shown.
This is compared to economic growth of 3.7pc reported during the first quarter of the year. This growth rate was revised upwards quite significantly from the US Commerce Department’s original estimate of 2.7pc economic growth.
However, the Commerce Department stressed that the Q2 GDP figures released today are first estimates based on source data that is incomplete and so the figure could be revised either upwards or downwards.
The department said the fall in GDP during the second quarter was down to a rise in imports and a slowing down private inventory investment.
Fears are growing that US economic growth is slowing, endangering the country’s recovery from recession. Today’s GDP figure are set to do little to assuage these fears, and are likely to cast a shadow over the markets.
That said, the US economy has still managed to expand for the fourth quarter in a row with positive growth in the second quarter of 2010.
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