That was the annual rate increase in the U.S. gross domestic product in this year’s second quarter, according to Commerce Department statistics released today. The increase was smaller than the revised 2 percent gain in the previous quarter.
Surrogates for President Barack Obama and Republican challenger Mitt Romney responded to the report quickly. The report was “quite disappointing,” Glenn Hubbard, a top economic adviser to Romney, said on a conference call.
“At that pattern, the economy simply will never return to full employment,” he said.
Alan B. Krueger, chairman of Obama’s Council of Economic Advisers, said on the White House blog that the economy posted its 12th straight quarter of growth and “additional growth is needed to replace the jobs lost in the deep recession that began at the end of 2007.”
The White House supports a bill, passed by the Democratic-run Senate this week, which would extend through 2013 the Bush-era tax cuts for individual income up to $200,000 a year and income of married couples up to $250,000. Republicans who control the House of Representatives want to extend the cuts for all taxpayers regardless of income level.
Here’s a look at some Bloomberg stories about the election and the economy:
ANEMIC RECOVERY: “We have an anemic recovery with really no momentum,” Julia Coronado, chief economist for North America at BNP Paribas in New York, told Shobhana Chandra for a story analyzing the GDP report.
POST-GDP FORECAST: Following today’s report release, an election prediction model by Emory University political scientist Alan Abramowitz projects Obama will get 50.5 percent of the popular vote and has a two-thirds probability of winning the Nov. 6 election, Mike Dorning writes.
HORSE TAXES: The Olympics open today in London, where a horse part-owned by Romney’s wife Ann is competing in dressage. Richard Rubin looks at the tax consequences of the Romneys’ investment in the horse business.