Weak Consumer Spending and cuts in government with dismisal hiring are reasons for Less Growth in US Says Economists

US Economy is at the slowest pace in the First half of the quarter soon after the recession.Even the second half is not looking much better. With weak consumer spending,dismal hiring and cuts in the government spending held back growth in April-June .

Economy

Economists in a survey  expressed that US economy expanded at an annual rate of 1.7 percent which follows 1.9 percent growth rate in first three months of the year. This week  growth rate Complicates that US Economy is weak and also in crisis . In order to raise the borrowing limit spending cuts for a long-term which withdraws government stimulus at a precarious time. 

Economists expected that  consistent growth rate  will improve in the later half of the year. But due to  high gas prices and supply disruptions happened due to Japan's earthquake .Growth is enough to improve the unemployment rate also which is currently 9.2 percent.

United States Of America

Nigel Gault said that "We're starting off the quarter in weaker shape than we thought," as in month of June there occurred a little growth in  retail sales.He is also expecting that  growth will be even less than 3 percent compared to earlier 3.4 percent in the July-September quarter which causes the raise of unemployment rate.He also suggested that economy needs to expand at 5 percent rate to improve the employment rate.