The U.S. economy grew at a 1.5% annual rate in the second quarter, slowing from 2.1% in the first quarter, the U.S. Bureau of Economic Analysis said Thursday.
The advance estimate covers April through June. On a quarter-to-quarter basis, real GDP increased 0.4%.
Economists surveyed by Reuters had projected a 2.1% annual pace, with estimates ranging from 0.8% to 2.9%. The survey predated June’s trade and inventory report, and Reuters said some economists later cut their projections as low as 1.5%.
Household spending, business investment and exports added to output, the BEA said. Lower government spending offset part of the gain. Imports also rose, which counts against GDP.
Real final sales to private domestic purchasers increased at a 3.9% rate, up from 1.7% in the first quarter. Consumer spending accelerated to 3.2% from 0.5%, Reuters reported.
The PCE price index rose 5.1%, up from 4.6% in the first quarter. Excluding food and energy, the index increased 3.4%, down from 4.4%.
The BEA will issue its second estimate Aug. 26, along with corporate profit figures.
This is a developing story. Virginia Times will update as information becomes available.
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