Recovery Slowing.


GDP estimates for the second quarter of 2010 were revised down today from 2.4% to 1.6% annualized growth. Economists had estimated that the forecast would be revised down even further to 1.3% or 1.4%. The new numbers confirm fears that the recovery has begun to stall and that growth may continue at a lower than expected pace. The downward revisions were expected after June numbers, released earlier in August, revealed a sharp deceleration of business inventory investment and a ballooning trade deficit that subtracted 3.4% from GDP -- the largest such deficit in 63 years. Consumer spending, the largest segment of the economy, grew for the fourth straight quarter, though only at a 2% rate.


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