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US economic recovery losing momentum

business Updated: Jul 27, 2012 23:45 IST
Yashwant Raj
Yashwant Raj
Hindustan Times
Yashwant Raj

The US economy grew by a modest 1.5% in the second quarter, according to government data released Friday, showing a loss of momentum that it had seemed to be picking up.

The world’s largest economy, which impacts areas far beyond its shores, grew by 2% in the first quarter. The second quarter was slow and sluggish in comparison. And this couldn’t be good news for President Barack Obama as a slow economic recovery remains the gravest threat to his re-election bid, with unemployment high at 8.2%.

The White House predictably tried to put a positive spin on Friday’s data with Alan Krueger, chief economic adviser to the president, saying, “Today’s report shows that the economy posted its twelfth straight quarter of positive growth.”

Slower recovery leaves the US economy, experts say, more vulnerable to troubles in Europe.