07/29/2011 09:38 EDT | Updated 09/28/2011 05:12 EDT

U.S. GDP Slows To 1.3 Per Cent In Second Quarter, Lowest Since Recession


WASHINGTON - The U.S. economy slowed in the first six months of 2011 to its weakest pace since the recession ended. High gas prices and scant income gains forced Americans to sharply pull back on spending.

The Commerce Department says the economy expanded only 1.3 per cent in the April-June period. And it downwardly revised the January-March figures to show growth of just 0.4 per cent, the weakest since the recession ended two years ago.

Consumer spending was almost flat this spring. It increased only 0.1 per cent, after 2.1 per cent growth in the winter. Spending on long-lasting manufactured goods, such as autos and appliances, fell 4.4 per cent.

Government spending fell for the third straight quarter. And state and local governments cut spending for the seventh quarter in eight since the recession ended.