<p>While second-quarter GDP came in significantly below most analysts' forecast of 1.6 percent, the most dramatic element in the report was a downward revision of the figures for the January-March period.<br /><br />After initially estimating that GDP expanded by 1.9 percent in the first three months of the year, the Commerce Department now says first-quarter growth was a paltry 0.4 percent.<br /><br />The disappointing GDP data added Friday to market worries about the continuing indecision in Washington over how to raise the debt limit ahead of an Aug 2 deadline.<br /><br />The US unemployment rate edged up to 9.2 percent in June, with nearly 14 million people out of work.<br /><br />Though the recession officially ended two years ago, economic growth remains too weak to recover the 8.4 million jobs lost during the slump.</p>
<p>While second-quarter GDP came in significantly below most analysts' forecast of 1.6 percent, the most dramatic element in the report was a downward revision of the figures for the January-March period.<br /><br />After initially estimating that GDP expanded by 1.9 percent in the first three months of the year, the Commerce Department now says first-quarter growth was a paltry 0.4 percent.<br /><br />The disappointing GDP data added Friday to market worries about the continuing indecision in Washington over how to raise the debt limit ahead of an Aug 2 deadline.<br /><br />The US unemployment rate edged up to 9.2 percent in June, with nearly 14 million people out of work.<br /><br />Though the recession officially ended two years ago, economic growth remains too weak to recover the 8.4 million jobs lost during the slump.</p>