Economy, Economic Growth | featured news

The U.S. economy grew at a tepid 1.7 percent annual rate in the April-June quarter, suggesting growth will stay weak in the second half of the year. Slightly stronger consumer spending and greater exports were the main reasons the Commerce Department reported Wednesday that growth was better than its initial estimate of 1.5 percent. Still, growth has slowed from the 2 percent annual rate in the January-March quarter and the 4.1 percent rate in the fourth quarter of 2011.

The International Monetary Fund lowered its estimates for economic growth for 2012 and 2013, and urged policy makers to do more to help the housing sector in the United States.

The U.S. economy expanded at a 1.9 percent annual rate in the first three months of the year, a weak pace that few economists see changing much this year.

China delivered a surprise interest rate cut on Thursday to combat faltering growth, underlining concern among policymakers worldwide that the euro area's deepening crisis is threatening the health of the global economy.

Chairman Ben Bernanke says the U.S. job market remains weak despite three months of strong hiring and that the Federal Reserve's existing policies will help boost economic growth.

Britain has decided to cooperate with the United States in a bilateral agreement to release strategic oil stocks, two British sources said, in an effort to prevent high fuel prices derailing economic growth in a U.S. election year.

U.S. economic growth was slower than previously estimated in the third quarter on a sharp drop in healthcare spending.

An acceleration in the pace of U.S. economic growth in the second half of this year is expected to ebb as 2012 gets underway, although the odds of another recession have receded to one-in-four, a Reuters poll showed on Wednesday.

Economic growth has gained some strength but remains too slow and would benefit from passage of a package of job proposals that congressional Republicans have blocked, Treasury Secretary Timothy Geithner said on Saturday.