US economy only grew 1.3 percent in second quarter

WASHINGTON - Agence France-Presse

A Bank of America branch is viewed in Times Square in New York City. AFP photo

The U.S. economy grew 1.3 percent in the second quarter of the year, far less than previously believed, U.S. Commerce Department data released yesterday showed.

The Commerce Department’s third estimate of gross domestic product growth (GDP) for the April-June period was well below expectations that the annual growth rate would hold unchanged at the prior estimate of 1.7 percent.

The latest estimate compared with an initial GDP estimate of 1.5 percent growth, following a 2.0 percent annual rate in the first quarter.

The second-quarter GDP number marked the slowest growth since the first quarter of 2011.

“The slowing came primarily from a decline in durable goods consumption and fixed investment,” said Scott Hoyt at Moody’s Analytics, calling the GDP report “disappointing.”