US GDP growth slows to 1.5 % in Q2
28 Jul 2012
The US economy expanded at a slower pace in the second quarter with the gross domestic product (GDP) registering a 1.5-per cent growth on annual basis, on weaker consumption and decline in government spending, according to data released Friday by the US commerce department.
The estimate is in line or even slightly better than analysts' expectations.
Growth in the world's largest economy is losing momentum, causing headache for the government's policy makers amid rising unemployment as president Barack Obama is set to seek a second term in November.
The government has revised upwards the GDP growth in the last two quarters.
The growth in the first quarter of 2012 has been revised to 2 per cent from 1.9 per cent and for the fourth quarter of 2011 it has been to 4.1 per cent from 3 per cent earlier.
Consumption expenditures recorded a 1.5 per cent increase in the second quarter compared with an increase of 2.4 per cent in Q1, contributing 1.1 per cent to the GDP.
