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| US economic growth at 1.7% in second quarter | US economic growth at 1.7% in second quarter |
| (35 minutes later) | |
| The US economy grew at an annualised pace of 1.7% in the second quarter of the year, the Commerce Department has said. | The US economy grew at an annualised pace of 1.7% in the second quarter of the year, the Commerce Department has said. |
| That was a faster pace than expected by economists. | That was a faster pace than expected by economists. |
| It was also up from the growth rate for the first three months of 2013, which was revised lower to 1.1% from 1.8%. | It was also up from the growth rate for the first three months of 2013, which was revised lower to 1.1% from 1.8%. |
| A slowdown was widely expected due to the impact of federal spending cuts, but also from the continuing weakness in the global economy. | A slowdown was widely expected due to the impact of federal spending cuts, but also from the continuing weakness in the global economy. |
| In March, $85bn (£56bn) of public spending was cut as a result of a deal between Democrat and Republican politicians. | In March, $85bn (£56bn) of public spending was cut as a result of a deal between Democrat and Republican politicians. |
| But the Commerce Department said that the federal government cut spending by only 1.5% in the April-to-June period, compared with a sharp drop of 8.4% in the first quarter. | |
| Revisions | |
| Consumer spending accounts for about 70% of US GDP. Official figures showed that consumers spent less in the second quarter than in the first, with personal consumption expenditure up 1.8%, compared with 2.3% previously. | |
| As well as the last set of quarterly figures, the Commerce Department also revised growth figures going back several decades. | |
| It said the US economy now grew by 2.8% in 2012, up from its previous estimate of 2.2%. This may help to explain why growth appeared weak last year but hiring continued to improve. | |
| The government also said that the economy contracted by 4.3% during the recession, which lasted from December 2007 to June 2009, better than the previous estimate of a 4.7% drop. |