The U.S. economy grew at a “tepid” 1.1% in the spring, according to the Associated Press. Businesses have “sharply reduced” their inventories of goods and are investing less into capital goods like new buildings and equipment.
The Commerce Department says gross domestic product, the broadest measure of the economy, increased at an annual rate of 1.1 percent in the April-June quarter. That is slightly below its previous estimate last month of 1.2 percent growth.
Consumers offset the corporate cutbacks by spending at the fastest pace in six quarters. That suggests steady job growth and modest pay gains are fueling healthy demand that could spur faster growth in the second half of this year.
The current, depressing state of the economy serves as a reminder that the promised economic "recovery" to be brought by liberal Democratic policies isn’t worth the paper fiat money is printed on.
Chris Pandolfo is a writer for the CR Wire. He holds a B.A. in Politics and Economics from Hillsdale College. His interests are Conservative Political Philosophy, the American Founding, and Progressive Rock. Follow him @cpandolfo2128.