Declining inventories curb Q2 growth; consumption surges

Washington

US economic growth was a bit more sluggish than initially thought in the second quarter as businesses aggressively ran down stocks of unsold goods, offsetting a spurt in consumer spending.

Gross domestic product expanded at a 1.1 per cent annual rate, the Commerce Department said on Friday in its second estimate of GDP. That was slightly down from the 1.2 per cent rate it reported last month.