US second quarter growth sluggish, as consumer spending surges

New data show economic growth in the US was slightly more tepid than initially thought in the second quarter – offsetting a spurt in consumer spending.

The Commerce Department says GDP expanded at a 1.1 percent annual rate, in its second estimate.

Economists do not think that is too worrying, pointing to more recent data that indicates a strong rebound in the third quarter.

The goods trade deficit narrowed sharply and residential construction rose in July – while demand for manufactured capital goods also surged.

The Atlanta Federal Reserve is currently forecasting third-quarter GDP rising at a 3.4 percent rate.

The US economy expanded at a 0.8 percent pace in the first quarter. It grew 1.0 percent in the first half of 2016.