Select Page

A resurgent auto industry has weathered the supply-chain hitches that stifled production during the spring and is poised to double the pace of U.S. growth in the third quarter, according to some estimates. But that may not be enough to help beleaguered consumers and businesses get a flagging recovery back on track.

The gross domestic product report due Friday from the Commerce Department is expected to show the economy grew at a 1.8% annual rate in the second quarter, down from 1.9% in the first quarter and the slowest pace in a year, according to economists polled by Dow Jones Newswires.

The pace of the economy in the spring was a disappointment, caused largely by shortages of key automobile parts following Japan’s earthquake and tsunami. Federal Reserve figures show that U.S. auto plants cut back motor vehicle production 5.9% in the second quarter from the first quarter—enough to significantly slow the economy.

Read the entire article at the: Wall Street Journal

Earthgarage – Greener Car. Fatter Wallet.