Fears rise U.S. rebound slowing

The U.S. economy may be headed for a slowdown reminiscent of the one it suffered in 2002 as the debt crisis in Europe, fading government support and persistently high joblessness weigh on expansion in the second half of the year.

The economy expanded at a 3.6 percent pace in the nine months through the first quarter, the latest data available from the government. Growth in the second quarter may be even faster. However, economists have begun to lower their forecasts for the first time since the recovery began in the middle of 2009.

While there have been good signs in the last four months, there's some fragility based on Europe's debt problems and U.S. state-government budget cuts as among the forces restraining growth and endangering the economic rebound.