The economy continued to grow in the second quarter, slowing down from previous quarters and not as fast as economists would like to see it. It was growth nevertheless, with gross domestic product (GDP) advancing at an annual rate of 2.4 percent, its fourth consecutive quarterly increase.

GDP grew in this year?EUR??,,????'???s first quarter at a 3.7 percent pace and in the fourth quarter of 2009 at 5 percent. The concern that this cool down presages a double dip and return to recession seems to be overblown.

It is not unusual to see variations in quarterly GDP growth coming out of a recession. Particularly strong quarters are often followed by weaker ones as growth in sectors responsible for the surge begins to moderate.

Although consumers are rebuilding their savings, they are also spending and likely to continue spending. Business investment may be weakening, but it will continue to advance as companies move to take advantage of low interest rates.

Buoyed by the home buyer tax credit, residential construction helped lift GDP in the second quarter, adding 0.6 percent to the overall growth rate, thanks to improvements in single-family activity and remodeling, with multifamily construction a negative.

This was the first positive contribution from this sector since it added 0.25 percent to growth in the third quarter of 2009, which was the first quarter in two-and-a-half years that home building was not a drag on GDP, a grim reminder of the depth and length of the housing downturn. Until housing fully recovers, it will take some time for the economy to recover. ?EUR??,,????'??? Courtesy of NAHB