Due to scarcity of jobs eroded consumer spending and leaving the rebound dependent on a surge in business investment, there was slow down in the second quarter of US economy.
According to Commerce Department data issued today in Washington, there was an increase in gross domestic product of 2.4 percent annual pace, less than forecast, after a 3.7 percent first-quarter gain which was larger than previously estimated.
There was a rise of 1.6 percent pace last quarter compared to 1.9 percent rate previous 3 months which was smaller than estimated in consumer spending which accounts for about 70 percent of the economy.
Price gauge was preferred by Federal Reserve’s which is tied to consumer spending excluding food and energy cost. It rose 1.1 percent annual pace. It was 1.2 percent rate in the first quarter.
According to 7 in 10 Americans, reducing unemployment is the priority. The global recovery has become boon for manufacturers in US.