Q2 GDP from Reuters
Reuters: Imports slow Q2 growth as business spending surges
By Lucia Mutikani
WASHINGTON | Fri Jul 30, 2010 5:06pm EDT
U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
The fastest rate of business spending in four years would normally be associated with increased confidence in the economy, but analysts said cash-flush companies were merely making up for ground lost during the recession.
Another factor pointing to anemic growth in coming quarters was a big rise in inventories. Against a backdrop of tepid consumer demand, the increase implied businesses probably have too much stock on their shelves and in their warehouses.
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By Lucia Mutikani
WASHINGTON | Fri Jul 30, 2010 5:06pm EDT
U.S. economic growth slowed in the second quarter as companies invested heavily in equipment from abroad and the pace of consumer spending eased, raising concerns about the recovery in the rest of 2010.
The fastest rate of business spending in four years would normally be associated with increased confidence in the economy, but analysts said cash-flush companies were merely making up for ground lost during the recession.
Another factor pointing to anemic growth in coming quarters was a big rise in inventories. Against a backdrop of tepid consumer demand, the increase implied businesses probably have too much stock on their shelves and in their warehouses.
I'll be back to add more tags. Done