The U.S. economy grew at an annual rate of just 1.5 percent from April through June, as Americans cut back sharply on spending. The slowdown in growth adds to worries that the economy could be stalling three years after the recession ended.

Chairman Ben Bernanke offered a sour assessment of the U.S. economy Tuesday and said the Federal Reserve is ready to take further action if growth doesn't pick up.

U.S. consumers spent no more in May than in April after seeing almost no gain in their pay. The lack of growth in consumer spending and wages suggests that a faltering job market is slowing the economy.

The U.S. economy expanded at a 1.9 percent annual rate in the first three months of the year, a weak pace that few economists see changing much this year.

Cheaper gas has yet to cause consumers to spend enough on other goods to boost the slumping economy.

Companies placed fewer orders to U.S. factories for the second straight month and a key measure that tracks business investment fell, adding to evidence that the economy is weakening.

The U.S. economy grew at an annual rate of 1.9 percent in the first three months of the year, slower than first estimated.

A measure of future U.S. economic activity fell in April after six months of increases. The drop reflected weakness in housing and hiring.