US economic growth likely weakened in Q2: report
WASHINGTON (AP) - A report on Wednesday is expected to show the US economy barely grew from April through June. But economists are hopeful that the weak second quarter is a temporary lull that gives way to stronger growth in the second half of the year.
Tax increases and steep government spending cuts probably did their worst damage to the economy in the second quarter. As their impact fades, solid job gains, more business spending and a steady recovery in housing should help accelerate growth.
Economists forecast that growth slowed in the April-June quarter to a seasonally adjusted annual rate of just 1 per cent, according to a survey by FactSet. That's below the sluggish pace of 1.8 per cent in the January-March quarter.
The Commerce Department will release the first estimate of gross domestic product, or GDP, for the second quarter at 8.30 am local time (8.30pm on Wednesday, Singapore time). GDP is the broadest measure of the output of goods and services, including everything from manicures to industrial machinery.