US economic growth seen slowing in second quarter

Spillover effect: Employees walk by the end of a 737 Max aircraft at Boeing’s factory in Washington. Design problems at aerospace giant Boeing have hurt business investment, with some spillover to exports. — Reuters

THE US economy likely grew at its slowest pace in more than two years in the second quarter as an acceleration in consumer spending was probably offset by weak exports and business investment.

The anticipated moderation in growth will come against the backdrop of rising risks to the economy’s outlook, especially from a trade war between the United States and China as well as slowing growth overseas, which are seen encouraging the Federal Reserve to cut interest rates next Wednesday for the first time in a decade.