Spring slump: U.S. economy only grows 1.2%
NEW YORK (CNNMoney) — America’s economy didn’t bounce back in the spring after a sluggish winter.
The U.S. economy grew a mere 1.2% between April and June compared to the same period last year, according to the Commerce Department.
It’s just a notch better than the winter, when the economy was extremely sluggish, growing by only 0.8%
The weakness come at a murky time for America’s economy. Job growth has slowed down this year after two years of historic gains. The economy has added over 1 million jobs so far this year and unemployment is still at a very low 4.9%.
Meanwhile, wage growth — the last indicator to really gain momentum — has picked up momentum but it is still well behind its pre-recession pace.
American consumers — the main engine of growth — have spent big in some months and pulled back in others this year. Overall, consumer confidence remains high, according to the University of Michigan’s well-tracked index.