The U.S. gross domestic product – or the nation’s output of goods and services – slowed to a growth rate of 1.5% in the second quarter, compared to 2% in Q1, the government said Friday.
The second-quarter estimate is an advanced figure that is subject to further revision. It’s also much better than analysts expected for the quarter.
Analysts with Econoday surveyed the data and concluded that “the recovery lost steam in the second quarter.”
The research team added, “Today’s report includes annual revisions and the first quarter was revised slightly up from 1.9%. The advance estimate came in higher than the consensus forecast for a 1.2% rise.”
Econoday says the data shows demand slowing and final sales of domestic product increasing by an annualized 1.2% in the second quarter after growing 2.4% in the first quarter.
The GDP evidently is strong enough for some analysts to charge that another round of quantitative easing from the Fed is unlikely in the very near future.
“The 1.5% annualized rise in the U.S. GDP in Q2, and some upward revisions to previous years’ data, support our view that the Fed is unlikely to launch QE3 at next week’s policy meeting,” said Paul Dales, senior U.S. economist with Capital Economics. “QE3 later in the year is not a done deal either. The gain in the second quarter was similar to the consensus forecast of 1.4% and back in line with our own 1.5%.”
