WASHINGTON (AP) — The U.S. economy grew at a meager 1 percent pace this spring, a slower rate than previously estimated. The downward revision will likely increase fears that the economy is at risk of another recession.
Fewer exports and weaker growth in business stockpiles led the Commerce Department to lower its estimate for the April-June quarter from its previous annual rate of 1.3 percent growth. That means the economy expanded only 0.7 percent in the first six months of the year.
Economists note that nine of the past 11 recession since World War II have been preceded by a period of growth of 1 percent or less. The weaker growth could rattle an already edgy stock market, which has lost 12 percent of its value since July 21.