US economy grew at 1.9% rate in Q2; jobless claims jump - by Sue Kirchhoff
The economy grew at a muted 1.9% annual pace in the second quarter of the year, buoyed by federal tax stimulus checks and strong exports, the Commerce Department said Thursday. Economists expected the economy to grow at a 2.3% rate in the second quarter. But even though the figures were more sluggish than expected, they could turn out to be the only high water mark for the year. In a recent survey by USA TODAY, 54 top economists predicted economic growth will slow to a barely perceptible 0.2% annual rate by the fourth quarter.
In a second report Thursday, the Labor Department said the number of workers filing new claims for jobless benefits rose 44,000 to a seasonally adjusted 448,000 the week ended July 26 from a revised 404,000 the prior week. It was the highest number since April 2003.An inflation gauge tied to the GDP report showed all prices galloping ahead at a rate of 4.2% in the second quarter, fastest pace since the end of last year.
Ian Shepherdson, Chief U.S. Economist at High Frequency Economics, called Thursday's numbers "soft and worse to come."
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