July 2010 Market Review: The domestic economy decelerated in the second quarter with rising imports and reduced consumer spending. Initial estimates show U.S. GDP grew at an annual rate of 2.4%, lower than the first quarter revised rate of 3.7%. Second quarter U.S. growth was reportedly driven by positive contributions from exports, private inventory investment, and federal government spending. Personal consumption also aided domestic growth during the quarter, but levels failed to exceed analyst expectations and consumption fell relative to the first quarter. Year-over-year growth in U.S. exports and imports reached record levels in May. U.S. personal consumption and income levels were flat in June, after wages had risen for eight consecutive months. Total consumer credit declined by $9.1 billion in May, a pace substantially higher than analyst expectations and a further indication of consumer retrenchment.
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