Economic Growth, U.s. Economy | 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 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.

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.

Bernanke said the U.S. economy will continue to grow in 2010 and the underlying strength of the world's largest economy will help ensure the dollar stays firm.

The government reported that output of goods and services grew at a 3.5 percent annual rate, which was faster than expected. But it will be months before job-seekers feel the benefits.