Even as U.S. President Barack Obama talked a good game on the United States' economy, the U.S. Bureau of Economic Analysis (BEA) revealed worrisome figures showing a deceleration in the ongoing economic recovery, with quarterly real gross domestic product growth rate dropping from 3.7 per cent to 2.4 per cent.
In a speech made during a visit to the General Motors' factory in Detroit, Mr. Obama hailed the successes of his administration's actions in restructuring the auto industry and called upon Republican leaders to stop blocking aid for small businesses.
He argued that as a result of the government's decision to bail out GM and Chrysler they had emerged from the brink of bankruptcy and added 55,000 jobs — “the strongest period of job growth in more than ten years.”
Mr. Obama further noted that for the first time since 2004, all three U.S. automakers were operating at a profit and sales had begun to rebound.
However, he conceded, “there is no doubt that we have a long way to go and a lot of work to do before folks here and across the country can feel whole again.”
In this context, Mr. Obama said it would be “commonsense” to give additional tax breaks and lending assistance to America's small business owners through the Small Business Jobs Act.
Yet, Republican leaders in the Senate “once again used parliamentary procedures to block it,” he said, calling upon them to set aside partisan manoeuvring and allow an up-or-down vote on the Bill.
But, the BEA cast the effectiveness of such policies in doubt and underscored the weakness in the growth trend.
“The deceleration in real GDP in the second quarter primarily reflected acceleration in imports and deceleration in private inventory investment.”