U.S. GDP Grows Less Than Previously Estimated In Q2

(RTTNews) - Revised data released by the Commerce Department on Wednesday showed the U.S. economy grew by less than previously estimated in the second quarter.

The report said the increase in gross domestic product in the second quarter was downwardly revised to 2.1 percent from the previously reported 2.4 percent. Economists had expected the pace of GDP growth to be unrevised.

The slower than previously estimated growth reflected downward revisions to private inventory investment and nonresidential fixed investment.

Upward revisions to state and local government spending, exports, consumer spending, federal government spending, and residential investment helped limit the downside.

The slower than previously estimated GDP growth in the second quarter still reflected a modest acceleration compared to the 2.0 percent increase in the first quarter.

The Commerce Department said the acceleration in GDP in the second quarter primarily reflected a smaller decrease in private inventory investment and an acceleration in nonresidential fixed investment.

These movements were partly offset by a downturn in exports and decelerations in consumer spending and federal government spending.