Economy Posts Weak 2Q Growth

(Newsroom America) -- U.S. economic growth slowed to a paltry 1.5 percent in the second quarter, as consumers cut back on spending and other economic indicators slipped, according to a Friday report from the Commerce Department.

Economic growth figures for the first quarter (January-March) were revised slightly upward, from 1.9 percent to 2 percent, the department said, though some economists noted that is still an anemic rate.

Analysts note that grow at or below 2 percent is not enough to lower the unemployment rate, which has been stuck above 8 percent for months. Economists have said the current slow recovery is the longest since World War II.

Moreover, economists have said they don't expect much growth for the rest of the year, as Europe's financial crisis and the United States' looming budget crisis is likely to stifle much investment.

The poorly performing economy is weighing on President Barack Obama's re-election bid, while playing into the hands of his Republican challenger, presumptive presidential nominee Mitt Romney.

Few analysts believe the White House, Congress or the Federal Reserve will be able to do much this year to bring the economy out of its doldrums.

The current 1.5-percent growth rate was the economy's weakest since it posted an anemic 1.3 percent rate in the third quarter of 2011.

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