The figure could have been worse. Some analysts were predicting even lower growth in the second quarter.
The slowdown is reflective of a weak consumer spending.
“If the economic data next week continues [to be weak], then probably the market can keep their hopes up that [the] Fed would eventually resort to more stimulus,” said Peter Cardillo, chief market economist at Rockwell Global Capital.
The figures make dismal reading for the White House and certainly a blow to President Obama in securing his job for a second term.
As campaigning gets serious the economy is losing momentum not gaining it and this is the issue voters say they care most about.