U.S. Economy Weaker Than Thought in Year’s First Half, by One Measure

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A key measure of U.S. economic output grew more slowly in the first half of the year than previously believed, government data released Thursday showed.Gross domestic income, adjusted for inflation, grew at a 0.8 percent annual rate in the first quarter of the year and barely grew at all — at just a 0.1 percent rate — in the second, the Commerce Department said Thursday. That was sharply weaker than the 1.8 percent and 1.4 percent growth rates reported in earlier estimates.Inflation F.A.Q.Card 1 of 5What is inflation? Inflation is a loss of purchasing power over time, meaning your dollar will not go as far tomorrow as it did today. It is typically expressed as the annual change in prices for everyday goods and services such as food, furniture, apparel, transportation and toys.What causes inflation? It can be the result of rising consumer demand. But inflation can also rise and fall based on developments that have little to do with economic conditions, such as limited oil production and supply chain problems.Is inflation bad? It depends on the circumstances. Fast price increases spell trouble, but moderate price gains can lead to higher wages and job growth.Can inflation affect the stock market? Rapid inflation typically spells trouble for stocks. Financial assets in general have historically fared badly during inflation booms, while tangible assets like houses have held their value better.Gross domestic product, a better-known measure of inflation-adjusted output, shrank during both periods, at a 1.6 percent rate in the first quarter and a 0.6 percent rate in the second. Those figures were unchanged from earlier estimates.Taken together, the two measures suggest economic growth was at best anemic in the first half of the year. At worst, the eco …

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