Posted: Aug 27, 2010 6:12 AM by Bea Karnes, News First 5
Updated: Aug 27, 2010 6:13 AM
A revision of U.S. economic growth is due Friday and it's expected to show a serious stumble.
The Commerce Department will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.
That's a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate.
The current quarter isn't expected to be much better, with many economists forecasting growth of only 1.7 percent.
Some economists believe the economy could slip back into recession. Many temporary factors that boosted the economy earlier this year are fading, including the impact of the government's $862 billion fiscal stimulus program.
That leaves the private sector to pick up the slack, but businesses are cutting back.