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October 13, 2008 2:18:40 PM CDT

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Jobless Rate Rises While GDP Rebounds

Posted Aug 3, 07 12:44 PM CDT in US,  Business 

(Newser) – The unemployment rate increased slightly in the second quarter, but the GDP recovered after a lackluster first quarter, providing Wall Street with a mixed report card of the nation’s economy as the Fed meets to determine interest rates. Unemployment ticked up 0.1% to 4.6%, hastened by losses in manufacturing, construction, and government, the WSJ reports.

The GDP grew to 3.4% in the second quarter, and economists are hopeful increased consumer spending will spark even more growth—joblessness is still hovering around 6-year lows. The economy is expected to grow by about 2.5%, and the balance between growth and inflation risk may lead to an interest rate cut at the Fed meeting next week.

Source Wall Street Journal

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Federal Reserve  • US economy  • Wall Street  • inflation  • interest rate  • unemployment  • consumer spending  • manufacturing  • construction  • GDP  • economic growth


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