News / Economy

US Economy Grew at Slower Pace in Second Quarter

US Economy Grew at Slower Pace in Second Quarteri
|| 0:00:00
X
Mil Arcega
September 28, 2012 11:05 PM
The U.S. economy grew at a slower pace from April to June than previously thought. Final government estimates for the second quarter show U.S. gross domestic product expanded at a 1.3 percent annual rate - down from last month's estimate of 1.7 percent. While growth was not as robust as many hoped, Mil Arcega reports for VOA that economists say it's not all gloom and doom for the world's largest economy.

US Economy Grew at Slower Pace in Second Quarter

— The U.S. economy grew at a slower pace from April to June than previously thought.  Final government estimates for the second quarter show U.S. gross domestic product expanded at a 1.3 percent annual rate - down from last month's estimate of 1.7 percent.  While growth was not as robust as many hoped, economists say it's not all gloom and doom for the world's largest economy.
 
U.S. domestic output weakened in the second quarter, growing at the slowest pace in 9 months. The slowdown is blamed partly on unusually warm weather - a prolonged drought that decimated farm inventories and sent corn and soybean prices to new highs.
 
But things are not as bad as they seem. Consumer spending outpaced growth in the second quarter - April through June.
 
And despite high unemployment, economist Max Wolff at Greencrest Capital said companies are laying off fewer workers.
 
"The job situation here is lousy but it's not terrible. So it's not worsening. We are seeing 100,000 - 150,000 new jobs a month. We do need 120,000 each month to keep pace with population growth," said Wolff.
 
The housing market also has seen steady improvement. Even after a slight dip in August, home sales are up from last year - and prices are rising. 
 
As for investments, Yahoo finance editor Aaron Task said the U.S. remains an attractive bet.
 
"In a global economy, global investors have to put their money somewhere. And they look at the United States as a safer place to put it than Europe, certainly than China, than a lot of the other emerging markets."
 
Others warn, however, against over confidence.
 
Uri Dadush heads the Global Economics program at the Carnegie Endowment for International Peace.
 
"Going forward, there are really three big things to worry about. One, the European situation continues to be very fragile in my view,” he said. “The second is the fiscal cliff - the famous fiscal cliff coming at the end of this year, and the third is the slowdown in emerging markets."
 
Dadush said uncertainty over the debt crisis in Europe and a political stalemate in the U.S. over tax cuts and spending - known as the fiscal cliff - have the potential to plunge the global economy into another recession.
 
Many will be looking for more clues on U.S. economic health when a key government report on the job market comes out on October 5.

You May Like

Uganda Court Annuls Anti-Gay Law

Court says law was passed in parliament without enough members present for a full quorum More

Multimedia Thailand Makes Efforts to Improve Conditions for Migrant Laborers

In Thailand, its not uncommon for parents to bring their children to work; one company, in-collaboration with other organizations, address safety concerns More

In Indonesia, Jihad Video Raises Concern

Video calls on Indonesians to join Islamic State of Iraq and the Levant, ISIL More

This forum has been closed.
Comments
     
There are no comments in this forum. Be first and add one

Featured Videos

Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
In Thailand, Some Efforts to Improve Conditions For Migrant Laborersi
X
Steve Herman
August 01, 2014 6:22 PM
Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video In Thailand, Some Efforts to Improve Conditions For Migrant Laborers

Thailand has been facing increasing international scrutiny as a hub of human trafficking and slave labor. Some of the kingdom’s companies are striving to improve working conditions, especially for the millions of migrant laborers from surrounding countries. VOA Correspondent Steve Herman in Bangkok takes a look at one initiative for children at construction sites
Video

Video Public Raises its Voice on Power Plant Pollution

In the United States, proposed rules to cut pollution from the nation’s 600 coal-fired power plants are generating a heated debate. The U.S. Environmental Protection Agency, charged with writing and implementing the plan, has already received 300,000 written comments. As VOA’s Rosanne Skirble reports, another 1,600 people are lining up this week at EPA headquarters and at satellite offices around the country to give their testimony in person.
Video

Video Information War Rages Alongside Real One in Ukraine

The downing of the Malaysian airliner two weeks ago, and allegations that Russians are shelling Ukrainian troops across the border, have moved the information war swirling around the Ukrainian conflict to a new level. VOA's Al Pessin reports from Kyiv.
Video

Video When Fighting Eases, Gazans Line Up at Bakeries

When there is a lull in the conflict in Gaza, residents who have been hunkered down in their apartments rush out to stock up on food and other necessities. Probably the most important destination is the local bakery. VOA’s Scott Bobb reports from Gaza City.
Video

Video China Investigates Powerful Former Security Chief

The public in China is welcoming the Communist Party's decision to investigate one of the country's once most powerful politicians, former domestic security chief Zhou Yongkang. Analysts say the move by President Xi Jinping is not only an effort to win more support for the party, but an essential step to furthering much needed economic reforms and removing those who would stand in the way of change. VOA's Bill Ide has more from Beijing.
Video

Video US-Funded Program Offers Honduran Children Alternative to Illegal Immigration

President Obama and Central American leaders recently agreed to come up with a plan to address poverty and crime in the region that is fueling the surge of young migrants trying to illegally enter the United States. VOA’s Brian Padden looks at one such program in Honduras - funded in part by the United States - which gives street kids not only food and safety but a chance for a better life without, crossing the border.
Video

Video 'Fab Lab' Igniting Revolution in Kenya

The University of Nairobi’s Science and Technology Park is banking on 3-D prototyping to spark a manufacturing revolution in the country. Lenny Ruvaga has more for from Nairobi's so-called “FabLab” for VOA.
Video

Video Immigrant Influx on Texas Border Heats Up Political Debate

Immigrants from Central America continue to cross the U.S.-Mexico border in south Texas, seeking asylum in the United States, as officials grapple with ways to deal with the problem and provide shelter for thousands of minors among the illegal border crossers. As VOA's Greg Flakus reports from Houston, the issue is complicated by internal U.S. politics and U.S. relations with the troubled nations that immigrants are fleeing.

AppleAndroid

World Currencies

EUR
USD
0.7305
JPY
USD
101.53
GBP
USD
0.5830
CAD
USD
1.0656
INR
USD
60.075

Rates may not be current.