US economy grows 1.7% in Q2, but weaker in Q1

The US economy grew 1.7% in the second quarter but the pace was much weaker in the first quarter than thought, according to the commerce department report released today.

The US economy grew 1.7% in the second quarter but the pace was much weaker in the first quarter than thought, according to the commerce department report released on Wednesday.

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The second-quarter gross domestic product growth was well above the 1.1% pace estimated on average by analysts but remained sluggish.

The commerce department sharply revised the first-quarter GDP figure to 1.1% from the prior 1.8% reading.

Consumer spending, which accounts for two-thirds of US economic activity, slowed in the April-June period. Personal consumption expenditures increased only 1.8% after a 2.3% rise in the first three months of the year.

Exports provided a boost, jumping 5.4% and wiping out the prior quarter's 1.3% decline.

The drag caused by federal government spending and investment cuts narrowed, falling 1.5% after a more than 8% fall in the first quarter.