GDP grows at sluggish rate

In a sign that the economy is growing at a slower pace than first thought, the growth of the U.S. gross domestic product was revised downward to a final reading of 2.8% for the second quarter, according to data from the Department of Commerce. The figure was revised from an initial reading of 3.3% for the April-June period. Looking ahead at the third quarter, analysts surveyed by MarketWatch are expecting a gross domestic product growth figure of 1.7%. “I wouldn't be surprised if we see the GDP continue to contract,” said J. Bruce Levis Jr., managing director of McQueen Ball & Associates Inc., a Bethlehem, Pa., firm that manages $840 million in assets. “We may still have two negative quarters — which signifies a recession — if that continues to take place. There are large problems that need to be worked through and it will not be solved in the short term.”