The second quarter growth was less than analysts had predicted.
The numbers suggest the weak and halting recovery from the 2008-09 recession is losing momentum.
The Commerce Department also reported that a revised analysis based on new retail sales and other data showed the U.S. recession from the fourth quarter of 2007 to the first quarter of 2009 was more severe than previously estimated. The economy contracted 5.1 percent during that period instead of 4.1 percent, which puts the current GDP at still below the pre-recession peak, according to economists.
Weak consumer and business investment were blamed for the downward estimates. The revised growth estimates help explain why unemployment has remain above 9 percent even though economic growth seemed to be gradually improving.
The August issue of American Shipper examines how the economy is stalling and how that is being felt in the freight sector ('Freight economics 101,' pages 6-12). ' Eric Kulisch
