WASHINGTON (dpa-AFX) – The US economy grew a little weaker in the spring than previously known. In the second quarter, gross domestic product (GDP) rose by 2.1 percent on the previous quarter, extrapolated for the year, as the Department of Commerce announced on Wednesday in Washington after a second estimate. A previous estimate had shown growth of 2.4 percent. In the first quarter, the world’s largest economy grew by an annualized 2.0 percent.
The ministry explained the weaker growth compared to the initial estimate with lower inventories by companies and lower investments. On the other hand, public spending was higher than initially reported and thus supported the development.
US growth figures are annualized, i.e. extrapolated for the year. They indicate how much the economy would grow if the current pace continued for a year. This approach is not used in Europe, which is why the growth figures are not directly comparable. To get a growth rate comparable to Europe, you would have to divide the US rate by four./bgf/jsl/mis