GDP growth revised down to 1% for 2Q
Gross domestic product — or output of all goods and services — grew at an annual rate of 1% in the second quarter, compared to growth of 0.4% in the first quarter, the Commerce Department said Friday. The real GDP figure is down from the department's original estimate 1.3% growth for the second quarter. The Commerce Department said an easing on imports, an upturn in federal government spending and nonresidential fixed investment helped GDP in the second quarter. But those advances were offset by declines in personal spending, exports and private inventory investment, the Commerce Department said. Capital Economics said underlying GDP growth "was actually a bit stronger" during the three months ended June 30. "Nonetheless, GDP growth probably won't be much better in either the third or fourth quarters," said Paul Dales, senior U.S. economist for the Toronto-based firm. "The slowdown is here to stay." Analysts surveyed by Econoday expected second-quarter GDP growth of 1.1% with a range of estimates from 0.7% to 1.6%. Econoday noted "while GDP growth was revised down, the more important measure of momentum — final sales — were revised up slightly but are still sluggish. Write to: Kerri Panchuk.