It’s no secret that the U.S. economy has experienced a weaker than normal economic recovery. Research indicates that recoveries that take place after a financial crisis induced recession tend to be softer, and the current business cycle is no exception. Recent information supplied by the U.S. Commerce Department indicate that the recovery has been even softer than previously understood.
According to the Department, the economy expanded at just a two percent annual rate from twenty twelve through twenty fourteen, down from the previous estimate of two point three percent. Nearly all of the weaker than anticipated growth occurred in twenty thirteen, when the economy grew just one point five percent, far less than the prior two point two percent estimate.
The Commerce Department annually revises its growth data, which are based upon updated data from the IRS, Census Bureau and other agencies. As reported by the Washington Post, twenty thirteen’s significant downward adjustment was largely due to weaker consumer spending. Consumer spending growth totaled just one point seven percent in twenty thirteen, down from the previous estimate of two point four percent. Government spending estimates were also downgraded.
