When the L.A. Times can’t spin it for you, man, it’s time to hang it up:
U.S. economic growth slowed further in the second quarter as consumers cut back on spending and businesses curbed their investments, the government reported Friday.
The economy expanded at a sluggish annual rate of 1.5% in the April-June quarter, down from an upwardly revised 2% growth pace in the first quarter and a 4.1% increase in the final quarter of 2011.
The latest reading of the nation’s gross domestic product — the total value of goods and services produced — was slightly better than analysts’ expectations of a 1.3% gain.
Still, the deceleration confirmed that the economy has slipped into another spring stall. The loss of momentum raises the risks of more trouble ahead as Europe’s economic problems hurt American exports and manufacturing, and growing angst about the so-called fiscal cliff — looming tax increases and government spending cuts — threatens to further weaken consumption and hiring by businesses.
An economy growing at a 1.5% pace is consistent with a monthly growth of less than 100,000 new jobs, said Sung Won Sohn, an economist at Cal State Channel Islands. “That’s not enough to take care of new workers coming into the labor force, let alone rescue the unemployed,” he said.
Better than expected; worse than it’s been.
I can’t figure out why massive government spending hasn’t done the trick!