U.S. second-quarter growth was a bit more sluggish than initially thought, but consumer spending was a bright spot. Bobbi Rebell reports.
The U.S. economy grew at a slower pace than initially estimated in the second quarter. Gross Domestic Product expanded at a 1.1 percent annual rate according to the Commerce Department, in line with estimates. Businesses aggresively ran down inventory of unsold goods but that was offset by a spurt in consumer spending. That makes up two-thirds of economic actiity and increased at the fastest rate since the fourth quarter of 2014. The data was a slight downward revision of the original 1.2 percent reported last month. The U.S. economy has struggled to regain momentum since output started slowing in the last six months of 2015, which puts it in danger of stalling.