APIndiana NewsNational NewsOhio News

U.S. Economy slows

(Source: http://bit.ly/1T0IDMJ License: http://bit.ly/1PpGKT1)

WASHINGTON (AP) — The U.S. economy slowed sharply in the second quarter even as consumers stepped up their spending.

The Commerce Department says the gross domestic product grew at a 2.1% annual rate in the April-June quarter, down from a 3.1% gain in the first quarter.

But consumer spending, which accounts for 70% of economic activity, accelerated to growth at a sizzling 4.3% rate after a lackluster 1.1% annual gain in the first quarter. This spending strength was offset by a widening of the trade deficit and slower business inventory rebuilding, which together pared GDP by 1.5 percentage points.

Economists worry that an economic slowdown could last for the rest of the year as the economy reflects weakness from overseas and a confidence-shaking trade battle between the United States and China.

Related posts

Governor questioned over Indiana’s probe of Amazon worker’s death

AP News

Muncie Man Convicted in Sword Attack on Store Manager

Kayla Blakeslee

Fort Wayne man arrested in drug bust

Darrin Wright

Leave a Comment