US recovery slows in second quarter to weakest pace in nearly a year

In this photo made June 30, 2010, foundations for homes in Lennar's Silver Palm addition in Homestead, Fla., have been started. The recovery lost momentum in the second quarter as growth slowed to a 2.4 percent pace, its most sluggish showing in nearly a y

The Associated Press

WASHINGTON - The U.S. economic recovery lost momentum in the second quarter as growth slowed to a 2.4 per cent pace, its most sluggish showing in nearly a year and too weak to drive down unemployment.

Weaker spending by consumers, less growth coming from companies restocking shrunken stockpiles and a bigger drag from America's trade deficits were the main factors behind the second quarter's slowdown.

The Commerce Department's report released Friday shows the economy grew at a 3.7 per cent pace in the first three months of this year.

That was much better than the 2.7 per cent pace estimated just a month ago.

Even so, the recovery has been losing power now for two straight quarters, raising concerns about whether it will stall.

© The Canadian Press , 2010