U.S. Economy Grows By 1.5 Percent In Q2, More Than Expected


28/07/2012 09:17 AST  RTT News

U.S. economic growth slowed in the second quarter of 2012, but still grew by more than most economists had predicted.

According to figures released Friday by the Commerce Department, the U.S. gross domestic product grew at 1.5 percent in the second quarter.

That marks a slowdown from the 2 percent growth posted for the first quarter, but a smaller contraction than most economists, who predicted just 1.2 percent growth for Q2, had expected.

The first quarter data, furthermore, was revised up from 1.9 percent growth previously reported.

The commerce department said that much of the decrease in economic growth for the second quarter came as a result of reduced consumer spending, fewer fixed investments in both residential and nonresidential properties and an increase in imports.

Partially offsetting those elements was an increase in inventory investment, an acceleration in exports and a smaller decrease in federal government spending.

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