August 27th, 2010
09:02 AM ET
4 years ago

Economy grinds to near halt

New York (CNNMoney.com) - The U.S. economy sputtered to a near stop in the second quarter, according to new estimates from the government released Friday, although the slowdown wasn't as bad as many had feared.

The nation's gross domestic product, the broadest measure on the amount of spending by consumers, businesses and government, was revised sharply lower to an annual growth rate of 1.6% in the three months ending in June. The initial reading had been for a 2.4% growth rate in the period.

The report fed into growing fears that the nation could be at risk of a new economic downturn known as a double-dip recession. While the economy is still growing, growth of less than 2% is considered too weak to prompt businesses to start hiring again.

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Filed under: Economy • issues
soundoff (36 Responses)
  1. rachel

    But... But Joe Biden says that the economy is growing how can this be?

    August 27, 2010 09:10 am at 9:10 am |
  2. Claudia, Houston, Tx

    I predict the economy will crash within months after the Republicans take the Senate/House and it will not recover.

    August 27, 2010 09:22 am at 9:22 am |
  3. jules sand-perkins

    Thank God for the stimulus!
    And glory be for President Obama's economic wisdom, leadership, Hope, and Change!
    Truly a Summer of Recovery to remember in November!

    August 27, 2010 09:22 am at 9:22 am |
  4. mf2

    The economy has not come to a halt. What an annoyingly, fear inducing statement. It reminds me of a South Park episode where everyone treated the economy like some sort diety. Fear the economy! Just because it didn't grow like you wanted. They make it sound like all financial transactions have come to halt and everyone is just sitting around wondering what to do next.

    August 27, 2010 09:23 am at 9:23 am |
  5. seebofubar

    We need to put a stop to the moronic policies of this failed administration now! We have children in the White House and in control of Congress, spoiled brat children. NEVER AGAIN.

    August 27, 2010 09:25 am at 9:25 am |
  6. USN

    Read yesterdays artical on Biden and how the stimulus is working ! This artical is obviouly wrong ! obama is too smart for us to comprehend so a double dip must be part of his plan .

    August 27, 2010 09:26 am at 9:26 am |
  7. Randolph Carter, I'm no expert, but...

    Well, what do you expect when half-baked comprimise solutions which favor big business are applied to deep structural problems which have caused wages to stagnate for the last 30 years. Thanks for nothing, congress critters and Mr. President. How is consumer spending supposed to pick up when business favors paying dividends to a few shareholders over paying a decent wage to the workers? You remember them, the ones who actually create real wealth instead of imaginary money which only exists in some computer on Wall Street. Have a nice day!

    August 27, 2010 09:28 am at 9:28 am |
  8. Fair is Fair

    Damn Bush.

    Oh wait... 2nd quarter 2010? Wait a second... Obama had been in office 18 months by then... and spent a few trillion to make sure this didn't happen.

    Heck of a job, Obama. Maybe he'll get the Nobel Prize for economics to go along with his Nobel Peace Prize.

    Yep... heck of a job. Your community just called, Obama... it needs to be organized.

    August 27, 2010 09:31 am at 9:31 am |
  9. Randolph Carter, I'm no expert, but...

    In a way, I kinda hope the republicans do take over so they can destroy the economy once and for all. Once the "real Americans" lose everything, maybe they'll get hip to how they have been used all these years and by whom. Have a nice day!

    August 27, 2010 09:32 am at 9:32 am |
  10. sandy

    Why wouldn't it. If the Republicans would stop saying no, maybe this country could move forward. I will remember them when I cast my vote.

    August 27, 2010 09:39 am at 9:39 am |
  11. Right Leaning Independent

    That is impossible!! This is the summer of recovery!! Our savior told us so not long ago!! Not to mention Biden's delirious rants about the economy improving... These people are in way over their heads.. They have no clue what they are doing and it is showing... Hope you all like the change that you voted for...

    August 27, 2010 09:40 am at 9:40 am |
  12. mother and sister of soldiers

    Until businesses know what they will face this January under Obama's heavy taxes, there will be no economic growth or meaningful job creation.

    August 27, 2010 09:42 am at 9:42 am |
  13. NYCitizen

    I find that the market is a very "emotional" entity. Have you noticed when the current news is not so good, the markets go down? That the more the economy is reported on, the markets are either flay or down? Perhaps if we stop this over-reporting of the economy's every turns and let it fix itself, we will notice more of an upward turn? What do you say media moguls? Would you give it a try?

    August 27, 2010 09:43 am at 9:43 am |
  14. Rick McDaniel

    This is why the Dems will not keep control of Congress, come November. No way.

    August 27, 2010 09:48 am at 9:48 am |
  15. Shawn-GA

    BEFORE YOU EVEN START WITH THE BACKWARDS BLAMING!

    This is NOT Bush's economy alone the Democrats have had control for 4 years not the Republicans.

    August 27, 2010 09:48 am at 9:48 am |
  16. Chessnutz of Liverpool NY

    The economy is going so slow it appears to be going backwards. 8 trillion dollars spent in stimulus since 2006, we might have well burned that money for all the good it did. The only good the mulitable stimulus has been is for the very criminals who caused this crisis.
    The too big to fail should have been left to fail. Hundreds of new business would have been created to fill the void of these many failures. but no our Government rewarded these monopolies with bailouts and the loss of our jobs.

    August 27, 2010 09:48 am at 9:48 am |
  17. jim

    This is really sad.CNN and other folks in the media have been telling us for months that we are in a recovery and that we need to be patient.Give the presidents plan a chance to take hold.Now that it's not quite that way , they want us to forget what they said and pretend that it never happened.How's that summer recovery tou working out Mr. Obama?

    August 27, 2010 09:48 am at 9:48 am |
  18. awaitingliberalizationbyCNN

    When you have a corrupt, inept, incompetent president, combined with a corrupt congress that works for the laziest and most criminal elements in this society like unions and takes money from hard working American taxpayers to give to these elements as political paybacks, we can only expect bad things. The unions have put practically all of our manufacturing out of business or out of the country, they have corrupted and ruined the education system, and through their public sector arms are bankrupting the states with their high salaries and inefficient, ineffective work rules. And yet this president and his administration give them all of our hard earned money so they can grow stronger. Criminal. Impeach Obama.

    August 27, 2010 09:54 am at 9:54 am |
  19. Mike in SA

    Welcome to "Recovery Summer!!!"

    August 27, 2010 09:55 am at 9:55 am |
  20. jules sand-perkins

    I'm sure that President Obama would prefer that we focus our comments on the WTC mosque/center and the Constitution.

    August 27, 2010 09:58 am at 9:58 am |
  21. Chad from Tampa

    Hold on a minute, I thought this was "Recovery Summer"? I've been told the Stimulous bill saved or created a bunch of jobs. So confusing.

    August 27, 2010 10:00 am at 10:00 am |
  22. Ancient Texan

    And VP Biden still thinks that a very small percentage of taxpayers that make over $250,000 are small business owners? They're right- you can't fix stupid. Hiring will not start until the small business owners can see a path through all the new regulations, new taxes and fees, Obamacare costs, fuel costs, and availability of low interest operating funds.

    August 27, 2010 10:03 am at 10:03 am |
  23. Michael Armstrong Sr.

    This goes to show that Obama and Biden both will look America in the face and tell bold faced lies .

    August 27, 2010 10:03 am at 10:03 am |
  24. Bill

    So much for supply side economics....

    August 27, 2010 10:23 am at 10:23 am |
  25. Tall Ed

    Look the Repubicans are getting what they wanted... let's drag our feet and bring the economy to a halt so we can blaim the Democrats.

    August 27, 2010 10:25 am at 10:25 am |
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