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GDP, Consumer Confidence Indicate a Slowing Recovery

Real gross domestic product grew 2.4 percent at an annual rate in the second quarter, compared to a 3.7 percent boost in the first quarter of this year, according to data released Friday by the U.S. Commerce Department's Bureau of Economic Analysis.

"Today's data shows us that the recession was steeper than initially estimated," said U.S. Commerce Secretary Gary Locke. "Eight million jobs were lost and a full recovery will not happen overnight. But America is undoubtedly moving in the right direction and this administration remains singularly focused on strengthening the economy and ensuring that every American who wants a job can get one."

The sluggish growth in the second quarter is likely related to a 28.8 percent increase in imports, according to reports by Reuters. This was the largest rise in imports in 26 years. In comparison, exports were up 10.3 percent in the second quarter.

In addition, the revision to the national accounts increased the total fall in real GDP during the recession from 3.7 percent to 4.1 percent. From a year ago, the economy has grown 3.2 percent.

According to reports by Reuters, GDP was expected to grow 2.5 percent in the second quarter.

Consumer confidence has also pointed to a slowing in the economy, slipping to its lowest level in nine months, according to Thomson Reuters/University of Michigan's Surveys of Consumers.

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