The nation’s economy grew a lackluster 1.3% in the second quarter, the government reported Friday, while growth in the first three months of the year was lowered to 0.4% from a prior reading of 1.9%.
What’s more, revisions undertaken each year by the Commerce Department show that the most recent recession was even deeper than the data originally suggested.
The sharp revisions, however, have led some economists to question whether the first quarter was really as weak as new data suggests.
Here are some Wall Street and Washington reactions:
• “Recovery? What recovery? Economic growth has largely stalled led by a depressed consumer and budget cutting state and local governments. Household spending came to a screeching halt as vehicle sales tanked in the spring.” — Joel Naroff, Naroff Economic Advisors
• “As expected consumer spending was extremely weak, registering a gain of only 0.1%, as the steep drop in auto sales and the drain of higher energy prices on household purchasing power made it a tough quarter.” — Stephen Stanley, Pierpont Securities
• “Government consumption fell for the third quarter in a row, by 1.1%, as a rebound in defense spending was more than offset by the ongoing drag from state and local governments that are cutting spending to meet their balanced budget rules.” — Paul Dales, Capital Economics
• “This is a shockingly weak GDP report that shows the economy growing at less than a 1% pace in the first half of the year. At the same time, however, it shows how deficient GDP is as a measure of economic activity. The revisions to growth are enormous both downward in the fourth quarter of last year and the first quarter of this year.” — John Ryding, RDQ Economics
• “This data fits more neatly with the rise in unemployment over the past several years and weakness over the first half of this year better explains the weakening labor force and the lower pace of job growth over the second quarter.” — Eric Green, TD Securities
• “Today’s first look at GDP in the second quarter confirms what we already knew: The economy isn’t growing as fast as it needs to. And every day that we fail to act to lift the debt ceiling and inch closer to default, we threaten our economic progress and job creation.” — U.S. Commerce Secretary Gary Locke
• “Despite the Obama administration’s promises of robust economic growth following its costly stimulus misadventures, the nation received yet another disappointing report today confirming what the American people already understand: the president’s economic policies are an abject failure.” — Tom Price, chairman of House Republican Policy Committee.
What’s more, revisions undertaken each year by the Commerce Department show that the most recent recession was even deeper than the data originally suggested.
The sharp revisions, however, have led some economists to question whether the first quarter was really as weak as new data suggests.
Here are some Wall Street and Washington reactions:
• “Recovery? What recovery? Economic growth has largely stalled led by a depressed consumer and budget cutting state and local governments. Household spending came to a screeching halt as vehicle sales tanked in the spring.” — Joel Naroff, Naroff Economic Advisors
• “As expected consumer spending was extremely weak, registering a gain of only 0.1%, as the steep drop in auto sales and the drain of higher energy prices on household purchasing power made it a tough quarter.” — Stephen Stanley, Pierpont Securities
• “Government consumption fell for the third quarter in a row, by 1.1%, as a rebound in defense spending was more than offset by the ongoing drag from state and local governments that are cutting spending to meet their balanced budget rules.” — Paul Dales, Capital Economics
• “This data fits more neatly with the rise in unemployment over the past several years and weakness over the first half of this year better explains the weakening labor force and the lower pace of job growth over the second quarter.” — Eric Green, TD Securities
• “Today’s first look at GDP in the second quarter confirms what we already knew: The economy isn’t growing as fast as it needs to. And every day that we fail to act to lift the debt ceiling and inch closer to default, we threaten our economic progress and job creation.” — U.S. Commerce Secretary Gary Locke
• “Despite the Obama administration’s promises of robust economic growth following its costly stimulus misadventures, the nation received yet another disappointing report today confirming what the American people already understand: the president’s economic policies are an abject failure.” — Tom Price, chairman of House Republican Policy Committee.
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