The U.S. economy appears to be in a sustainable slump according to financial analysts who predict sluggish growth will get even worse next quarter.
The U.S. economy grew at an anemic rate of 2.2 percent in the last quarter, splashing water on the ashy embers of an already weak economic recovery.
Most analysts hoped for at least a 2.6 percent growth rate and some predicted 3 percent. First reports on economic growth are often revised downward as additional data becomes available.
Consumption grew at a 2.9 percent rate despite growing public opinion in national polls indicating the country is headed in the wrong direction.
Private investments added 0.8 percentage point reflecting a flat rate of net trade. Heavy cutbacks in defense spending helped create a drag on investment spending.
Financial experts now expect even slower growth in the second quarter due to poor manufacturing performance revealed in recent jobs reports. Adding to concerns that a sustained U.S. economic downturn is underway, lackluster job creation reflected in the last quarter reports indicate consumption will not to rise significantly next quarter.