US Economy: Anxiety mounts as U.S. economy limps into 2nd half

From manufacturing to job growth to consumer spending, the numbers have been grim, and economists are wondering whether they need to dial down forecasts for the remainder of the year. The US economy grew at a 1.9 percent annual pace in the first quarter and estimates for the April-June period are increasingly coming in around 1.5 percent.

"Our sense was that of a gradual improvement. Now the sense is of muddling along at a low level of activity," said Adolfo Laurenti, deputy chief economist at Mesirow Financial in Chicago. "We went from seeing progress, though gradual and very uneven, to not seeing progress at all."


The housing market, where home sales and prices have trended higher in recent months, should offer some support as demand for furniture and other household items picks up. Construction activity is also strengthening, but homebuilding accounts for only about 2.3 percent of GDP.

Even more worrying for economists is the persistent service sector sluggishness. Services account for about 65 percent of consumer spending and around 45 percent of GDP.

Read more: Anxiety mounts as U.S. economy limps into 2nd half | Reuters