Economy Still Growing Albeit at a Tepid Pace

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The U.S. economy continued to grow in the second quarter of 2012, but its growth remained lackluster. After increasing at a 2 percent annual rate in the first quarter, real (inflation-adjusted) GDP rose at an anemic 1.7 percent rate in the second. This slowdown affected labor markets. In the second quarter, job growth slowed considerably, and the unemployment rate began to inch upward after falling to a three-year low of 8.1 percent in April. But there are pockets of good news. Housing is on the mend, stock prices are rising, employment gains in July and August are tracking above their second-quarter average, and inflation is easing. On net, though, forecasters generally expect relatively …