US Economy Grew At A Slower Pace Than Earlier Estimate And The Fed Pledged To Take Action If Necessary The US real GDP growth moderated to a revised annualised rate of 1.6% in the 2Q, weaker than +2.4% estimated previously (+3.7% in the 1Q) but stronger than the market expectation of 1.4%. This was due mainly to a sharperthan-
expected increase in trade deficit, as imports accelerated while exports eased during the quarter. As a result, net exports subtracted 3.4 percentage points from GDP growth in the 2Q, compared with -2.8 percentage points estimated previously and -0.6 percentage point in the 1Q. A smaller-than-expected build-up in inventory as businesses turned cautious also contributed to the slower growth. These were, however, mitigated by a stronger-than-expected increase in consumer spending and fixed-asset investment during the quarter.
Tracking The World Economy... - 30/08/2010
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