CORPUS CHRISTI: In this file photo, an oil refinery near the Corpus Christi, Texas, Ship Channel. The US economy grew slightly more slowly in the second quarter than previously thought, the government reported yesterday with new data showing weaker oil exports and local government spending. - AFP

WASHINGTON: The
world's largest economy grew a little more slowly in the second quarter than
previously thought, the government reported yesterday, with new data showing
weaker oil exports and local government spending. GDP expanded in the
April-June period by 2.0 percent, down a notch from the initial 2.1 percent
growth estimate and well below President Donald Trump's three percent target,
according to the Commerce Department. Recession indicators in recent weeks have
begun to flash warning signs, and though the American economy is still
outpacing the rest of the industrialized world, it has begun to sputter
worryingly in some areas.

Still, corporate
profits rose in the second quarter, according to newly available figures, after
falling at the start of the year. While largely confirming economists'
expectations, the second quarter GDP numbers nevertheless marked a sharp
slowdown from the heady pace of growth at the start of the year.

While
unemployment remains low, hiring has slowed in 2019, and business investment
has dropped sharply. Investors have become increasingly worried a recession in
the rest of the world and the Brexit turmoil will spill over into the United
States-already stressed by Trump's grinding trade conflicts with China. But a
solid bump in consumer spending-on health care and retail goods-provided a dose
of good news and offset the weaker areas.

The numbers
confirmed the growing divide between consumers and big business, which have
sharply curtailed investment in new factories as the trade war has shaken their
confidence, disrupting supply chains and raising prices. While investment in
structures was its weakest in more than three years, private consumption of
non-durable goods was the strongest since 2003.

Tourism and
travel was another sore spot, as falling revenues from foreign visitors helped
shave a half percentage point off growth in exports of services, hitting
hotels, restaurants and tourist attractions.

Trump has by
turns denied that the US economy is weakening or sought to blame the Federal
Reserve for failing to cut interest rates fast enough. A real estate magnate,
Trump campaigned on his stewardship of the economy, so signs growth is
faltering could potentially jeopardize his chances at winning a second term in
next year's elections. But economists worry that, with interest rates already
very low, the Fed may have little room to maneuver should a recession arrive,
while a divided Congress and soaring deficits may make fiscal stimulus unlikely
at best.

Meanwhile, the
Trump administration made official its extra 5 percent tariff on $300 billion
in Chinese imports and set collection dates of Sept 1 and Dec 15, prompting
hundreds of US retail, footwear, toy and technology companies to warn of price
hikes. The US Trade Representative's office said in an official notice that
collections of a 15 percent tariff will begin at 12:01 am EDT (0401 GMT) Sunday
on a portion of the list covering over $125 billion of targeted goods from China.

This initial
tranche includes smartwatches, Bluetooth headphones, flat panel televisions and
many types of footwear. US Customs and Border Protection will also start
collecting a 15 percent tariff on Dec. 15 on the remainder of the $300 billion
list, including cellphones, laptop computers, toys and clothing, USTR said in
the Federal Register filing.

A USTR spokesman
said on Wednesday that the agency would issue a separate Federal Register
notice with details of Trump's planned tariff increase to 30 percent on $250
billion in goods that have already been hit with a 25 percent tariff, including
procedures for collecting public comments on the move.

Hundreds of
retailers, footwear companies and business groups urged Trump to scrap the
proposed tariffs, warning they would jack up consumer prices and trigger job
losses. More than 200 US footwear companies on Wednesday said the added 15
percent duties on shoes would come on top of tariffs that already average 11
percent and reach 67 percent on some shoes, boosting costs for consumers by $4
billion every year. "Imposing tariffs in September on the majority of all
footwear products from China - including nearly every type of leather shoe -
will make it impossible for hardworking American individuals and families to
escape the harm that comes from these tax increases," the companies wrote
in a letter to Trump.

More than 160
other business groups, including the National Retail Federation, Retail
Industry Leaders Association and Association of Equipment Manufacturers, also
urged Trump to postpone the tariffs, warning they would hit Americans in the
middle of the busy holiday shopping season. Global markets remain on edge after
the latest flurry of tit-for-tat tariffs, and the lack of firm details on the
next round of trade talks. - Agencies