Economic Growth

WASHINGTON — The economic slowdown in spring was worse than most thought — and the current quarter isn't looking that much stronger as manufacturing is weakening. The Bureau of Economic Analysis on Thursday revised down the nation's economic growth in the second quarter to a measly 1.3% annual rate, down from its previous estimate of 1.7%. Most analysts were expecting the government's third and final report for the second quarter to show that gross domestic product — or total value of goods and services produced — expanded by 1.7%.

WASHINGTON -- The Federal Reserve on Thursday slightly lowered its forecast for economic growth this year, reflecting the still-struggling recovery and helping to justify the decision to launch another round of stimulus. The central bank's new forecast, released before Fed Chairman Ben S. Bernanke's quarterly news conference, doesn't make drastic changes from its June projections.  But it still lowered growth in the nation's gross domestic product, calling for a weak 1.7% to 2% increase this year.

STATELINE, NEV. - The blue waters of Lake Tahoe framed the stunning backdrop as the politicians orated. There were some droning Nevadans and three always-interesting Californians: Sen. Dianne Feinstein, U.S. Rep. Tom McClintock and Gov. Jerry Brown. This was a "save the lake" crowd, heavy on environmental concerns, attending the 16th Annual Lake Tahoe Summit inaugurated in 1997 by President Clinton. The recent event was basically designed as a pep rally for continued slow growth and environmental regulation.

WASHINGTON -- The private sector created 163,000 net new jobs in July, exceeding analysts' expectations but still indicating sluggish economic growth ahead of Friday's government unemployment report. The figures released Wednesday by private payroll firm Automatic Data Processing Inc. showed job growth was down compared with a revised 172,000 net new private-sector jobs in June. But the July growth was above the 120,000 economists had projected. "This increase marks 2 1/2 years of positive job growth," said Carlos A. Rodriguez, ADP's chief executive.

A weak second-quarter economic report made it clear that the country remains stuck in a painfully slow recovery for the foreseeable future. Analysts now say that the economy for the rest of this year will look much like it does today, with the November election taking place in an economic middle zone -- neither robust growth nor a plunge into recession. Fresh government data Friday confirmed that economic growth slowed in the second quarter as consumers, despite seeing relief from lower gasoline prices, pulled back on spending for cars and other big-ticket items.

WASHINGTON -- U.S. economic growth slowed further in the second quarter as consumers cut back on spending and businesses curbed their investments, the government reported Friday. The economy expanded at a sluggish annual rate of 1.5% in the April-June quarter, down from an upwardly revised 2% growth pace in the first quarter and a 4.1% increase in the final quarter of 2011. The latest reading of the nation's gross domestic product -- the total value of goods and services produced -- was slightly better than analysts' expectations of a 1.3% gain.

The sunny weather in July isn't doing much for consumer sentiment - confidence is at the lowest level of the year, according to a new index compiled by Thomson Reuters and the University of Michigan. All sorts of factors are to blame: The hiring and wage deceleration in the U.S., the ripple effect of the malaise in Europe, the threat of a fiscal cliff of higher taxes and spending cuts along with the slowing gross domestic product reported Friday, and more. The monthly gauge in sentiment slipped 1.2% to 72.3 in July from 73.2 the previous month.

WASHINGTON - As more businesses report falling sales, fewer are planning to hire over the next six months amid growing concern about sluggish economic growth and the looming "fiscal cliff. " Just 23% of companies plan to hire in the next six months, down from 39% in April, according to the National Assn. for Business Economics, a group that includes economists at companies, trade associations and academia. The quarterly survey, released Monday, polled member companies last month.

BEIJING — China said its economy grew 7.6% in the second quarter compared with a year earlier. It was the weakest pace of expansion in three years but in line with analysts' expectations. Declining investment in real estate and infrastructure as well as shrinking exports to Europe and the U.S. have contributed to the slowdown in the world's second-largest economy. "It's not easy for China to achieve a 7.6% growth rate," Sheng Laiyun, a spokesman for China's National Bureau of Statistics, said at a news conference in Beijing on Friday.

In an American Express ad promoting Small Business Saturday, a man in a cowboy hat declares: "Small businesses are the lifeblood of our community. " A woman sitting in a clothing store declares such enterprises "absolutely crucial, vital. " Over a montage of shops, a young woman explains how local shops "make you happy to live where you live. " American small businesses may still be struggling in a tight economy, but they are also basking in a rash of good publicity. Portrayed as modern-day underdogs, they are seen as symbols of independence, self-reliance and perseverance, virtues that hark back to the days when Thomas Jefferson celebrated "free men in pursuit of industry and improvement" who would shape the nation.