Tuesday, June 29, 2010

Quarterly growth revised downward by Commerce Department
Economic growth was weaker in the last quarter than previous quarters

WASHINGTON, DC--The Commerce Department revised the first quarter's growth downward from 3 percent to 2.7percent. Economists state that quarterly growth should be at least 3.5 percent to keep up with job losses and keep the economy from faltering further. In order to outpace the recession, growth needs to be at least 5 percent on a regular per quarter basis, but in order to out grow the recession, quarterly growth should average between 7 and 9 percent (the same rate sustained for 15 months in the 1980's).

U.S. economist with Capital Economics, Paul Dales, said, "Overall, the U.S. economy may be performing much better than those in Europe, but this is still the weakest and longest economic recovery in U.S. postwar history." By contrast, the economy grew 5.6 percent in the last quarter and most quarters have averaged approximately 3.5 percent, which could be an early indicator the economy is entering a double-dip recession or a W-shaped recovery.

-- Killswitch Politick

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