Uh-oh spaghetti-o. The economy grew less than expected from April to June despite all the tax rebate checks that were sent out. The news goes right along with the 77 percent of Savvy readers who didn't believe the checks would stimulate the economy.
Gross domestic product expanded at an annual rate of 1.9 percent in the second quarter, primarily because of a burst in export sales powered by the weak dollar, according to The New York Times. The tax stimulus package, which put around $90 billion dollars into consumers' pocketbooks, only prompted a small lift in spending.
- Economists had expected the economy to grow by 2.3 percent last quarter, primarily because of the $100 billion in tax rebates mailed to consumers in the Spring.
- Domestic consumption only rose 1.5 percent for the quarter — an improvement over the 0.9 percent rate recorded in the previous period, but less than many had hoped.
Apparently, experts are now wondering how the economy will perform through the Summer and Fall because it seems Americans are cutting back and not spending their stimulus checks as wildly as expected.