Posted
on Fri Jul 30, 2010
Last updated
Jul 30, 2010
WASHINGTON -The recovery lost momentum in the second
quarter as growth slowed to a 2.4 percent pace, its most sluggish
showing in nearly a year and too weak to drive down unemployment.
Weaker spending by consumers, less growth coming from companies
restocking shrunken stockpiles and a bigger drag from the nation's
trade deficits were the main factors behind the second quarter's
slowdown.
The Commerce Department's report released Friday shows the
economy grew at a 3.7 percent pace in the first three months of
this year. That was much better than the 2.7 percent pace estimated
just a month ago. Even so, the recovery has been losing power now
for two straight quarters, raising concerns about whether it will
stall.
