The economy sucks under Obama. This year is no different from last year. 1st quarter GDP was revised to 1.9 and the second quarter GDP is 1.3. Any projections given by economists or the White House should be looked at with scrutiny. Over projection does not play well with the American public. Once the American public is lead to a false sense of security, pessimism runs high.
(Reuters) - The U.S. economy stumbled badly in the first half of 2011 and came dangerously close to contracting in the January-March period, raising the risk of a recession if a stand-off over the nation's debt does not end quickly.
The Commerce Department data on Friday also showed the current lull in the economy began earlier than had been thought, with the growth losing steam late last year.
That raised questions on the long held view by both Federal Reserve officials and independent economists that the slowdown in growth this year was mostly due to transitory factors.
"The economy essentially came to a grinding halt in the first half of this year," said Ryan Sweet, a senior economist at Moody's Analytics in West Chester Pennsylvania. "We did get side-swiped by some temporary factors which are fading, but it raises some concerns about the sustainability the recovery."
The economy grew at a 1.3 percent annual pace in the second quarter after expanding just 0.4 percent in the first three months of the year. First-quarter growth was revised from the previously reported 1.9 percent increase.
While the recovery stepped-up in the second quarter, economists had expected a stronger 1.9 percent reading.
Fourth-quarter growth was revised to a 2.3 percent rate from 3.1 percent.
There is also heightened uncertainty over the outlook because of the impasse in talks to raise the nation's $14.3 trillion borrowing limit and avoid a damaging government debt default, although the budget cuts a deal may impose could also weigh on growth.