The US economy grew at a slightly slower rate than initially forecast in the second quarter, underscoring a weak performance in the first half of 2016. The economy expanded at an annualised rate of 1.1 percent, rather than the predicted estimate of 1.2 percent, the Department of Commerce said. Consumer spending rebounded sharply in the three-month period to a growth rate of 4.4 per cent from 1.6 per cent in the first quarter.
However, a fall in inventories among businesses weighed heavily on gross domestic product, knocking the figure down by 1.3 percentage points. Investment was weak more broadly as energy groups cut back on capital spending on structures such as oil rigs in light of the decline in the price of crude. Residential investment, which encompasses new-home construction, also fell after several quarters of strong gains.