More grim news about the state of the US economy as the latest government figures showed it grew much more slowly than previously thought between April and June.
Gross domestic product was up by just 1.0 percent from the same period last year. The Commerce Department’s earlier estimate was 1.3 percent growth.
There were a couple of bright spots as consumer spending was revised up and company profits rose at the fastest pace in a year, but inventories – the amount of goods that businesses have ready to sell – were down and exports also fell.
In the first quarter, the world’s largest economy had expanded by just 0.4 percent which means growth almost stalled in the first six months of this year.
The United States is on a recession watch after a massive stock market sell-off amid low consumer and business sentiment.
However data such as industrial production, retail sales and employment did suggest the economy could avoid an outright contraction.