The US government has lowered its Gross Domestic Product estimate from 3 percent, to 2.7 percent for the second quarter of the current year. A reduction in consumer spending levels was the main reason given for the downgrade. Despite the reduction, this marks the third straight quarter that the economy has expanded and somewhat eases concerns of the possibility of a Ã¢â‚¬Å“second-dipÃ¢â‚¬Â recession.
On a more negative note however, the result is weak when compared to the growth levels experienced in the aftermath of previous recessions. This, together with ongoing problems in Europe, has some analysts concerned that the global economy will continue to struggle for some time yet.
High unemployment also continues to place a damper on any recovery. The number of new jobless claimants did decline by 19,000 new claims last week, but still, nearly half a million people filed for benefits. The number of people receiving extended benefits also rose.