US second quarter growth disappoints
30 Jul 2010
US economic growth figures have stoked concerns over the state of the global economy, with gross domestic product (GDP) growing at an annualised rate of 2.4% in the second quarter, less than estimates.
The rate of growth was down from a revised figure of 3.7% in the first quarter and will fuel worries that the world's number one economy could slip back into recession. The US economy has now grown for four consecutive quarters after a recession coincided with the worst global economic crisis since the 1930s.
Shares fell back across the markets after the disappointing figures.
The US, like the UK, is still plagued by weak consumer confidence and high unemployment. The UK recorded growth of 1.1% in the second quarter, ahead of expectations figures showed last week.
However, government spending cuts and disappointing net trade figures will cap growth in the UK economy at 1.3% this year, despite the surprise second quarter surge, according to new research published Wednesday.
And figures from the EU today showed that unemployment remained at 10% across countries that use the euro in June, the same as in the previous month.
