The US economic output i.e, GDP in the second quarter of 2010 has been sharply revised downwards today by the US commerce department , from 2.4% to 1.6%. The sharply lower figure is despite the massive stimulus spending by the US government.
These numbers clearly indicate that the US economy is heading into another bout of recession. That is a real bad news for the entire world because a drop in US GDP means weaker exports for all the rest of the nations of the world. That would mean lot of drop in demand for industrial commodities which in turn could pull down even independent economies like Australia and China and India.