WASHINGTON (CBS.MW) - The U.S. economy slowed in the second quarter of the year, growing at a 2.8 percent annual rate after a growth spurt in the previous four quarters, the Commerce Department reported Friday. The government revised its earlier estimate of 3 percent annual growth in real gross domestic product to reflect more complete data on the economy's performance from April through June.
Economists were expecting a revision to about 2.8 percent, according to a survey conducted by CBS MarketWatch. Economists are expecting growth to reaccelerate to about 3.5 percent to 4 percent in the current quarter, which ends Sept. 30, although some are beginning to question whether the June soft patch in growth will linger.
The big picture view of the economy was largely unchanged by the revisions. The trade deficit was a larger drag on growth than previously assumed, but consumer spending, business investment and inventory building were all stronger. Income growth was revised lower
In current dollar terms, the GDP totaled $11.64 trillion annualized. GDP is the sum of all final sales of goods and services produced in the United States.The economy has grown 4.7 percent in the past four quarters.As in the earlier estimate, the new report showed consumer spending slowed in the quarter while investments surged. Final sales of domestic product increased 2.1 percent, the slowest in six quarters.
http://cbs.marketwatch.com/news/story.asp?guid={EBAE69BD-3A70-4332-B0F5-A929B650427B}&siteid=mktw
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