U.S. economic growth continues to slow
Means lagging advertising growth for media companiesNEW YORK -- U.S. economic growth continued to slow in the second quarter, confirming fears of a recovery that is losing steam.
For media and entertainment companies, that could mean slowing advertising growth, but it seems that investors weren't too surprised by the latest economic data. After all, big media and entertainment stocks hardly budged Friday.
As of 12:45 p.m. ET, CBS Corp. shares were down 0.1%, Disney was down 0.4%, while Time Warner, News Corp. and Viacom were each up 0.2%.
Most analysts don't expect advertising growth, especially in the red-hot TV market, to slow until next year when year-ago comparisons become tougher.
The Commerce Department on Friday said U.S. GDP, a widely used measure of economic performance, grew at a 2.4% annualized rate in the second quarter, compared to a revised 3.7% in the first quarter.
GDP has been back on a growth path, which many economists have argued means
that the recession that began in late 2007 has ended.
However, weaker-than-expected job creation and slowing GDP growth rates have raised fears of a so-called double-dip recession, or a return to recessionary state.
Many forecasters have predicted economic growth of less than 2% for the second half of the year.