The Economy: It's Worse Than We Thought : Planet Money The economy performed worse than we thought during the recession, but things are a little better this year.
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The Economy: It's Worse Than We Thought

This unemployed guy could have told you the economy was no great shakes. Paul Sakuma/AP hide caption

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Paul Sakuma/AP

The nation's economy grew at a modest 2.4 percent rate last quarter, according to the Commerce Department, which also revised down estimates going back three years.

That means the recession was worse than previously believed. The government revised down its estimates for seven quarters dating back to the first quarter of 2007.

But the Commerce Department said the first quarter of this year showed more growth than previously reported, 3.7 percent compared to 2.7 percent. The second-quarter data showed businesses are investing more in equipment and buildings, while consumers are keeping their spending in check. Consumers are also saving more than previously reported.