U.S. Economy Grew Less Than Projected During Second Quarter

U.S. Economy Grew Less Than Projected During Second Quarter

By: Daniel Steingold | August 29, 2016

Figures released on Friday show that the U.S. economy grew at a slower rate than previously projected last quarter.

Gross Domestic Product (GDP), which measures the value of all goods and services produced within a country, rose by only 1.1 percent in annualized growth, a decrease from the 1.2 percent initially projected.

It is expected that the American economy will pick up in the third quarter of 2016, in part due to an expected increase in household purchases. With the revised figures showing gains in wages and salaries, it is safe to assume that consumers will have the means to spend more.

The lag in the American economy has prompted the Federal Reserve to delay making a hike in interest rates. Donald Trump has used the lackluster economy to his advantage on the campaign trail, calling it “the weakest so-called recovery since the Great Depression.”

Even though a 1.1 percent GDP growth rate is less than ideal, it still beats the 0.8 percent growth rate found during this year’s first quarter from January through March.

Business activity was also shown to have decreased relative to the first quarter of 2016. Both before-tax earnings and profits had shown a decline.

In better news, worker pay jumped by $92.6 billion, a $44.2 billion climb from the previous estimate.

The next quarterly economic report will be released following late September.

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