July 30, 2012
High unemployment isn’t going away — not as long as the economy grows as slowly as it did in the April-June quarter.
Weak consumer spending held growth to an annual rate of just 1.5 percent, even less than the 2 percent rate in the first quarter. And few expect the economy to accelerate in the second half of the year as Europe’s financial woes and a U.S. budget crisis restrain businesses and consumers.
The growth estimate Friday from the government suggested that the U.S. economy could be at risk of stalling three years after the recession ended. Economists generally say even 2 percent annual growth would add only about 90,000 jobs a month. That’s too few to keep up with population growth and drive down the unemployment rate, which is stuck at 8.2 percent.
- Few Think Sluggish US Economy Will Strengthen Soon (abcnews.go.com)
- GDP likely slowed without strong consumer spending (money.cnn.com)
- Few Think Sluggish U.S. Economy Will Strengthen Soon (zen-haven.dk)
- U.S. Hiring Likely Improved Only Modestly in June (business.time.com)
- US economy appears weaker as retail sales slump (kansascity.com)
- US economy appears weaker ahead of jobs report (newsobserver.com)
- Fewer auto closings reduce US unemployment claims (kansascity.com)
- US economy appears weaker as retail sales slump (cnsnews.com)
- US economy grows at 1.9 pct. annual rate in Q1 (hosted.ap.org)
- Few think sluggish US economy will strengthen soon (miamiherald.com)