Economy Slowing

Back to School sales can't come soon enough for retailers. The Commerce Department reported US second quarter 2011 economic growth at 1.3% -- and revised the first quarter to 0.4% (down from 1.9%). Consumer spending was up only 0.1% while government spending was down 1.1%. Worse, core inflation grew at 2.1% in the second quarter 2011, biggest jump since fourth quarter 2009, and that comes atop a 1.6% increase in the first quarter 2011. The ugly numbers are throwing doubt upon economists' forecasts of 3% growth during the second half 2011.