U.S. economic growth slows to 1.6 percent

The economy grew at a 1.6 percent rate in the second quarter, according to the Commerce Department, which earlier had projected a 2.4 percent increase. The new figure is based on more complete data. 

The economy is growing much more slowly than earlier in the year. In the first three months of 2010, gross domestic product grew at an annual rate of 3.7 percent. 

The new figure was anticipated, but is still sure to increase worries the economy may be sliding back into a recession. Growth in the manufacturing sector has slowed down, the housing market remains in a deep crisis and consumers are still saving money and reducing their debt instead of spending. 

This has created a nightmare scenario for congressional Democrats, who are headed into a midterm election where the economy is weakening rather than strengthening. Unemployment stands at 9.5 percent, but the slow pace of economic growth suggests that figure could rise this fall.