Daily News: July 23, 2012

Bloomberg: Growth Cooled as American Curb Spending

Bloomberg noted, based on what economists said before a report this week, that the U.S. economy probably expanded in the second quarter at the slowest pace in a year as a weaker labor market prompted Americans to cut back on their spending.

Bloomberg said gross domestic product rose at a 1.4% annual rate after a 1.9% gain in the prior quarter, according to the median forecast of 70 economists surveyed by Bloomberg News.

Consumer purchases are weakening at a time Europe’s debt crisis and looming U.S. tax-policy changes threaten to further restrain corporate investment, Bloomberg notes.

Bloomberg quoted a senior economist at Bank of America as saying, “We’re seeing weak numbers pretty much across the board. Softening consumption is definitely a big part of the slowdown. The uncertainty over Europe and the fiscal cliff will impinge on business decisions and activity.”

To read the Bloomberg story, click here.