GDP Estimate Shows Economy Slowed in Q2

Washington, DC, July 30, 2010--The U.S. economy lost some steam in the second quarter of the year, according to the Commerce Department.

Real gross domestic product rose at a 2.4% annual rate in the second quarter, well below the average 4.4% increase over the last six months.

The 2.4% increase in GDP was close to the 2.5% expansion expected by economists. However, the rate of expansion in the first quarter was revised up to a 3.7% rise compared with the prior estimate of a 2.7% increase.

Annual revisions released at the same time as the first estimate for second-quarter GDP show that the Great Recession was deeper than previously thought.

During the recession, real GDP decreased at a 2.8% average rate, down from the prior estimate of a 2.5% rate.

At the same time, the recovery, already one of the slowest, has been a bit slower. From the third quarter of 2009 to the first quarter, the economy grew at a 3.4% annual average rate, just below previous estimate of a 3.5% increase.

Although the increase in GDP in the quarter was not as strong as the first quarter, many of the details of the report were positive. Much of the deceleration was due to the trade sector. Consumer spending was only slightly weaker than the first quarter.