US GDP growth revised down to 1% in Q-2
The US economic growth rate revised down to an annual rate of 1% in Q-2 of this year from the previous estimate of 1.3, the US Commerce Department said Friday.
Weaker growth in business inventories, waning exports and declining spending from state and local governments contributed to the slower pace of economic growth from April to June.
The low economic growth came after the Country's real gross domestic product (GDP) expanded by just 0.4% in Q-1.
The GDP report was released before US Federal Reserve Chairman Ben Bernanke's Key policy speech from Jackson Hole, WY on Friday.
Real personal consumption expenditures edged up a meager 0.4% in Q-2, compared with an increase of 2.1% in Q-1.
Personal consumption accounts for around 70% of US economic activity, and is the major engine of the economic growth.
Real exports of goods and services gained 3.1% in Q-2, compared with an increase of 7.9% in Q-1.
Real imports of goods and services rose 1.9%, compared with an increase of 8.3% in Q-1.
Against the backdrop of government spending cuts, real state and local government consumption expenditures and gross investment fell 2.8%, compared with a decrease of 3.4% in Q-1.
Some experts worry that the weak US economic growth might further dampen the confidence of inventors and consumers.
Paul A. Ebeling, Jnr.
Paul A. Ebeling, Jnr. writes and publishes The Red Roadmaster's Technical Report on the US Major Market Indices, a weekly, highly-regarded financial market letter, read by opinion makers, business leaders and organizations around the world.
Paul A. Ebeling, Jnr has studied the global financial and stock markets since 1984, following a successful business career that included investment banking, and market and business analysis. He is a specialist in equities/commodities, and an accomplished chart reader who advises technicians with regard to Major Indices Resistance/Support Levels.