US economy grew just 1.0% in second quarter (Another adjusted downgrade)

AFP ^ | 8/26/2011 | AFP

[tobyhill]

The US economy grew at a weaker pace than initially believed in the second quarter, the government said Friday in a report that underscored the tenuous nature of the two-year-old recovery.

The Commerce Department lowered its estimate for second-quarter growth in gross domestic product to an annual rate of 1.0 percent from the first quarter, from a prior reading of 1.3 percent.

"The recovery continues, but is extremely fragile. The economy has expanded just 1.5 percent over the past year, too weak to create the job growth necessary for a self-sustaining expansion," said Augustine Faucher at Moody's Analytics.

Growth in the April-June period was hit primarily by downward revisions to inventory investment and exports, that were only partly offset by upward revisions to business fixed investment and consumer spending.

The second-quarter reading was a tick worse than analysts expected, and followed near-stalled GDP growth of 0.4 percent in the first quarter.

[ex-Texan]

Zero Hedge's view on the subject of Fed Policy:

Federal Reserve Policy Mixed With Extreme Weather Has Put The World On A Fast Track To Revolution And War

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The economy has expanded just 1.5 percent over the past year, too weak to create the job growth necessary for a self-sustaining expansion

1.5 percent is less than the inflation fudging the Obama administration has been dking, so we actually experienced negative growth.