“The US economy grew at an annual rate of just 1.2% from April to June, the US Department of Commerce announced on Friday, as cut backs by businesses wiped out a rise in consumer spending.” – The Guardian
The good news: The US economy is growing, mostly because of consumers who increased spending by 4.2%. Improvements in jobs and wages are helping, as are low interest rates and low fuel prices.
The not so good news: Businesses are spending less, including spending less on machines which suggests they expect a slowdown, or at least don’t want to take on more risk. Meanwhile, durable goods orders dropped by 4.2%.
The news would be better, but consumer spending is being constrained by housing costs which continue to rise. As for business spending, businesses have become scared of taking risk; which probably isn’t likely to change with the current uncertainties in the world.
The good news for the US: The economy may not be as healthy as we’d like, but it is one of the best in the world, for now.
(Click on the graph for the link.)