Second Quarter Economic Growth Adjusted to Lower Rate

by Patrick Lunsford, CollectionIndustry.com

U.S. economic growth in the second quarter of this year was revised downward, the Commerce Department reported today.

Initially reported last month, the rate of growth of the gross domestic product was estimated at 2.9%. But the Commerce Department said that the actual rate of growth was 2.6%.

Most economists and analysts were not expecting any revision at all; they felt the initial number was accurate. So the substantial downward revision came as somewhat of a surprise.

The first three months of 2006 saw the GDP grow at a brisk 5.6%. But all economists warned that flagging growth was ahead for the remainder of the year. Although economic growth has slowed by more than half, the economy continues to grow at a reasonable pace.