The US economy grew less than previously estimated - at an annual rate of 1.3 per cent - in the second quarter, according to a final figure issued Thursday by the US Commerce Department.
The third estimate for the April-June period lowered gross
domestic product (GDP) growth from the August estimate of 1.7 per
cent.
First quarter growth was 2 per cent, following a rate of 4 per
cent in the last quarter of 2011.
In response to the slowing growth, which has left unemployment
above 8 per cent, the rate-setting Federal Reserve announced on
September 13 that it plans to buy up to 40 billion dollars in
long-term securities every month, to support the still-shattered
housing market.
The government's preliminary estimate in July put second quarter
growth at an annual rate of 1.5 per cent.
The final estimate is based on more complete data.
The revision reflects consumer spending that was lower than first
estimated, as well as smaller increases in business investment and
housing construction.
Farm inventories were also revised lower, due to a drought that
has lowered production across much of the United States. The drought
is expected to weigh on GDP for the July-September quarter, too.
