Energy Prices Stunt Growth

Summary


Weighed down by high energy prices, the economy was even more sluggish than initially believed during the second quarter. But Federal Reserve policy-makers say the pace will pick up in coming months, something President Bush is counting on as the election approaches.

The Commerce Department reported Friday that gross domestic product grew at a 2.8 percent annual rate in the April-to-June quarter, down from an earlier estimate of 3 percent. The new GDP reading - the smallest gain in just more than a year - indicated the economy slowed considerably compared with the brisk 4.5 percent growth rate in the first quarter of 2004.

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Extract


Energy Prices Stunt Growth

Gross domestic product is considered the broadest b...

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