The U.S. economy grew at a modest 2 percent annual rate in the second quarter, a pace sharply lower than the 3 percent-plus growth rates seen over the past year. Many analysts believe growth will slow further in coming quarters as global weakness and rising trade tensions exert a toll.
Growth in home prices contributed around 15 percent of the growth in America’s GDP during what is now the longest economic expansion in the country’s history, according to a new report from housing data firm CoreLogic.
The U.S. economy grew at a solid 3.1 percent rate in the first three months of the year, but much of that gain was based on temporary factors that will likely fade, leaving growth much slower in the current quarter.
The U.S. economy slowed in the final three months of last year to an annual growth rate of 2.6 percent, the slowest pace since the beginning of 2018, as the government shutdown and other factors took a toll on growth. Economists believe growth has slowed even more in the current quarter.
The U.S. economy slowed less than initially thought in the first quarter, but there are signs it could struggle to rebound sharply in the second quarter amid slowing business investment and moderate consumer spending.
U.S. economic growth slowed in the first quarter but not as sharply as previously estimated, with gains in exports and software investment partially offsetting weak consumer spending.
