Gross domestic product growth was significantly lower than expected, according to a Value Walk report.
Here are five things to know:
1. GDP growth was just 1.2 percent in the second quarter, which was less than half of what was expected. The first quarter GDP was also revised from 1.1 percent to 0.8 percent, making this year the weakest start since 2011.
2. Consumer spending, however, was robust with 4.2 percent increase in the second quarter. The consumer spending accounts for more than two-thirds of the GDP.
3. Total private business investment dropped at a 2.3 percent pace in the second quarter and bank investment shrank at a 2.2 percent annual rate.
4. The report points to regulatory costs as a main reason why business isn’t investing, and Democratic presidential nominee Hillary Clinton promises more rules on finance, healthcare, drug prices and more.
5. The report also notes that Republican presidential nominee Donald Trump’s economic themes of restricting the labor force and immigration control would harm the economy.