US economy grew 2.5% in second quarter

WASHINGTON (AFP) - The US economy grew at an annual rate of 2.5 per cent in the second quarter, the Commerce Department said on Thursday, leaving its prior estimate unchanged.

Analysts had expected that second-quarter gross domestic product (GDP) expanded at a slightly stronger 2.6 per cent pace.

The world's largest economy grew 1.1 per cent in the first quarter.

"With the third estimate for the second quarter, the general picture of economic growth remains largely the same," the Commerce Department said.

Revisions offset each other in the data, leaving the previous estimate unchanged.

Inventory investment was lower than previously estimated, amid weaker spending by food and beverage stores and information industries.

Exports of goods and services also were revised lower.

But state and local government spending was revised upward, particularly in investment in structures.

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