Growth dips in Q2, but it is poised to rise in the second half of the year

• Although recent job, income, and business investment data signal a dip in Q2 growth, trends in the leading economic indicators keep pointing to a modest acceleration in the second half of 2012
• Downside risks include slower growth in emerging markets and the European debt crisis
• Productivity growth continues to weaken, as employment growth outpaces GDP
• A loose labor market and slowing profits are keeping a lid on wage growth