U.S. economic activity in the second quarter grew by slightly less than initially estimated, according to a report released by the Commerce Department on Friday.
The report said gross domestic product increased by 1.1 percent in the second quarter, reflecting a downward revision compared to the originally reported 1.2 percent growth. The revision matched economist estimates.
The downwardly revised GDP growth in the second quarter still reflects an acceleration from the 0.8 percent increase seen in the first quarter.
The Commerce Department said the slower than initially estimated growth primarily reflected downward revisions to state and local government spending and private inventory investment
The slower growth also reflected an upward revision to imports, which are a subtraction in the calculation of GDP.
Meanwhile, upward revisions to non-residential fixed investment and consumer spending helped to limit the downside.
Consumer spending surged up by 4.4 percent compared to the initially reported 4.2 percent jump and the 1.6 percent increase in the first quarter.
On the inflation front, the Commerce Department said its reading on core consumer prices, which exclude food and energy prices, climbed by an upwardly revised 1.8 percent in the second quarter.
by RTT Staff Writer
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