Graph 1  The US economy clearly lost momentum around the middle of the year, with GDP growth slowing to an annual rate of about 2 per cent over the June and September quarters. This is below potential.
Our reading of more recent data is that they have been a bit stronger, but nonetheless consumer confidence remains low, the housing and labour markets remain weak, and the repair of household balance sheets still has quite a way to run. BIS Review 153/2010  1  Basically, the US household sector is in very poor shape.