Economic Growth Falls In Q2

The Commerce Department reported a decline in US economic growth, down from an annual rate of 3.7% in Q1 to 1.7% in Q2.

The slowing down of real GDP in Q2 was primarily due to a rise in imports and a decline in private inventory investment. Consumer spending and nonresidential fixed investment contributed significantly to economic growth in Q2.

The government had previously projected a 1.6% annual growth rate for Q2. The deviation in the government's projection was because of revisions to inventory investment and consumer spending.

Economists had expected the annualized rate to remain unchanged at 1.6% in Q2.

Read more from Benzinga's Markets.