Economic Report: Second-quarter GDP rises just 1.2%, well below forecast

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American consumers gave a lift to the economy in the spring. But businesses held back

The U.S. economy expanded at a slightly faster 1.2% pace in the second quarter, but a big rebound in consumer spending was overshadowed by the largest decline in business investment since the end of the Great Recession.

The Atlanta Federal Reserve’s closely followed GDPNow had forecast a 1.8% increase in gross domestic product, the official scorecard of the nation’s economy. Some economist has predicted an even stronger performance.

The surprisingly weak GDP reading in the spring — after a weak 0.8% growth in the first-quarter — raises fresh questions about whether the economy will gain momentum in the second half of the year.

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