Bronco_Beerslug
08-27-2004, 01:33 PM
Iraq quagmire (200 billion and counting), health-care going through the roof, record deficit, record trade deficit, still haven't secured our borders and now the economy heading back-wards.
-----------------------------
By Andrea Hopkins
WASHINGTON (Reuters) - U.S. economic growth slowed more sharply in the second quarter than first thought as oil prices rose and the trade gap swelled, the government said on Friday in a report that confirmed momentum faltered in the spring.
U.S. gross domestic product -- which measures total output within the nation's borders -- expanded at a 2.8 percent annual rate in the second quarter to $10.8 trillion, down from the 3.0 percent pace estimated last month by the Commerce Department (news - web sites).
The downward revision marked a sharp slowdown from the first quarter's 4.5 percent expansion, but was widely expected by Wall Street and markets had little reaction.
"Rapidly fading fiscal stimulus, a collapse in mortgage refinancing and sharply higher energy costs reduced households' purchasing power," said Steven Wood, an economist at Insight Economics.
While there are signs the economy picked up strength in the summer, analysts said growth is unlikely to bounce back quickly enough in the third quarter to spur job creation.
"Overall economic growth should accelerate but will likely remain below the 4 percent pace needed to reduce unemployment," Wood said.
http://story.news.yahoo.com/news?tmpl=story&cid=580&e=3&u=/nm/20040827/bs_nm/economy_dc
-----------------------------
By Andrea Hopkins
WASHINGTON (Reuters) - U.S. economic growth slowed more sharply in the second quarter than first thought as oil prices rose and the trade gap swelled, the government said on Friday in a report that confirmed momentum faltered in the spring.
U.S. gross domestic product -- which measures total output within the nation's borders -- expanded at a 2.8 percent annual rate in the second quarter to $10.8 trillion, down from the 3.0 percent pace estimated last month by the Commerce Department (news - web sites).
The downward revision marked a sharp slowdown from the first quarter's 4.5 percent expansion, but was widely expected by Wall Street and markets had little reaction.
"Rapidly fading fiscal stimulus, a collapse in mortgage refinancing and sharply higher energy costs reduced households' purchasing power," said Steven Wood, an economist at Insight Economics.
While there are signs the economy picked up strength in the summer, analysts said growth is unlikely to bounce back quickly enough in the third quarter to spur job creation.
"Overall economic growth should accelerate but will likely remain below the 4 percent pace needed to reduce unemployment," Wood said.
http://story.news.yahoo.com/news?tmpl=story&cid=580&e=3&u=/nm/20040827/bs_nm/economy_dc