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WASHINGTON (AP) — Analysts say they're still hopeful that the economy will rebound in the second half of this year.
Their optimism comes despite today's report from the Commerce Department that the economy grew at an annual rate of just 1.2 percent in the spring. That's far below what was expected.
The government also revised downward its estimate of first-quarter growth to eight-tenths of one percent.
Chris Williamson, an analyst with HIS Markit, says the "ongoing softness" will reduce the chances that the Federal Reserve will again raise interest rates before December.
Consumer spending, which accounts for 70 percent of economic activity, did accelerate in the spring, growing at an annual rate of 4.2 percent. That was more than double the 1.6 percent rate in the first quarter.
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