The economy grew at a slightly faster pace in the second quarter than initially estimated, according to Commerce Department data released Wednesday, increasing at an annual rate of 1.7 percent. þþAnalysts had been expecting a small upward revision, but the latest figures still represent a deceleration in gross domestic product growth from the first quarter, when the economy grew at a 2 percent rate. þþAnd despite the upward revision from the initial estimate of 1.5 percent for the second quarter, many economists see the economy slowing in the second half of the year. þþJulia Lynn Coronado, chief economist for North America at BNP Paribas, said she expected economic growth to slow to 1.3 percent in the third quarter, improving only slightly to 1.8 percent in the fourth quarter. þþ“It’s not disastrous, but it is one reason the Federal Reserve is on high alert,” she said, referring to widespread speculation that the American central bank could soon embark on a third round of monetary easing. þþRising uncertainty about the presidential election in November and fiscal policy in the United States is crimping growth, she said, along with continuing fears over Europe’s debt problems and a slowdown in China’s once-booming economy. þþ þ
Source: NY Times
