"[Economic] growth is slow but not fragile, and there may be a modest pickup in the second half"
- Dean Maki, chief U.S. economist at Barclays Capital
The world's largest economy slowed in the second quarter as business invested at a slower pace and consumers cut spending. Gross domestic product rose at an annualized rate of 1.5 per cent in April-June quarter, a decline from downwardly revised 1.9 per cent gain in the first quarter of this year.
"We're not going to bust out of this moderate-growth recovery we've been in for quite some time," said Dean Maki, chief U.S. economist at Barclays Capital in New York.
"Growth is slow but not fragile, and there may be a modest pickup in the second half."
U.S. stocks closed higher. The Standard & Poor's 500 increased 1.91%, or 25.95 points, to 1,385.97. The Dow Jones Industrial Average gained 1.46%, or 187.73 points, to 13,075.66. The Nasdaq Composite rose 2.24%, or 64.84 points, to 2,958.09.
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