US Economic Growth Slows in Q2

02 October 2006

WASHINGTON: US economic growth was slower than expected during the spring quarter according to latest figures released by the Commerce Department which show GDP rose by 2.6% - below the estimated 2.9%.

The economy has shifted into a lower gear thanks to the cooling housing market, the toll of once-surging energy prices and the impact of the Federal Reserve's two-year string of interest rate increases.

The National Association for Business Economics is forecasting the economy to expand at a pace of 2.6% in the current third quarter and in the final three months of the year.

Data sourced from USA; additional content by WARC staff