Summer of Wreckovery: GDP revised downward to 1.4 from 2.4 percent

The Department of Commerce confirms this morning that the Obama administration’s much touted Summer of Recovery is a bust, or as the Associated Press puts it, “The economy barely has a pulse“:

The Commerce Department on Friday will revise its estimate for economic growth in the April-to-June period and Wall Street economists forecast it will be cut almost in half, to a 1.4 percent annual rate from 2.4 percent.

That’s a sharp slowdown from the first quarter, when the economy grew at a 3.7 percent annual rate, and economists say it’s a taste of the weakness to come. The current quarter isn’t expected to be much better, with many economists forecasting growth of only 1.7 percent.

Such slow growth won’t feel much like an economic recovery and won’t lead to much hiring. The unemployment rate, now at 9.5 percent, could even rise by the end of the year.

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