US Economic Growth Stalls

 

US Economic growth sputtered and stalled in the second quarter of 2012, with the Gross Domestic Product slowing to a 1.5% growth rate.  Consumer spending, which accounts for almost 3/4 of economic activity, also wound down to a paltry 1.5%.

Remind us again how we got here, failed President Obama, would you please?

Just like we’ve tried their plan, we tried our plan — and it worked.  That’s the difference. That’s the choice in this election.  That’s why I’m running for a second term. (Obama, July 24, 2012)

If this is your idea of working, I’ll take the other choice in this election, thank you very much.

The U.S. economy expanded at a slower pace in the second quarter as a softening job market prompted Americans to curb spending.

Gross domestic product, the value of all goods and services produced, rose at a 1.5 percent annual rate after a revised 2 percent gain in the prior quarter, Commerce Department figures showed today in Washington.

[…]

Today’s report showed household consumption rose at a 1.5 percent from April through June, down from a 2.4 percent gain in the prior quarter. The median forecast in the Bloomberg survey called for a 1.3 percent advance. Purchases added 1.05 percentage points to growth.

Recent data signal consumers are reluctant to step up purchases. Retail sales fell in June for a third consecutive month, the longest period of declines since 2008. Same-store sales rose less than analysts’ estimates at retailers including Target Corp. and Macy’s Inc.

But let’s please worry about chicken sandwiches and Mitt Romney’s entirely accurate statements about London’s preparations for the 2012 Olympics, shall we.

FYI, at this point in Reagan’s recovery (2Q 1984), the economy was growing at a 5.0% rate year over year, and that was in comparison to massive growth the previous year.

1983:1   2.60
1983:2  10.90
1983:3   6.50
1983:4   7.00
1984:1   7.40
1984:2   5.00
1984:3   2.30
1984:4   2.30