The New Media Journal | US GDP Revised Sharply Lower

The New Media Journal | US GDP Revised Sharply Lower: "Fears of a faltering US economy were realized on Friday when growth for the second quarter was revised down sharply to an annual rate of 1.6 percent from an initial estimate of 2.4 percent.

The weaker output reflected a wider trade gap and weaker inventory investment. Consumer spending, which was stronger than previously estimated, helped support output. The figure was well below the first-quarter growth rate of 3.7 percent.

Economists were expecting the downgrade as disappointing data in recent weeks has shown a widening trade gap, slower inventory build-up and softening consumer spending. However, many analysts had projected a sharper downgrade and investors were heartened that the figures were not worse..."