US gross domestic product (GDP) growth in the second quarter was unrevised at 2 percent from a second estimate, the US Department of Commerce said in its third and final estimate on Thursday, reports BSS/Xinhua.
The final estimated rate marks a deceleration from the 3.1-percent growth in the first quarter. Downward revisions to personal consumption expenditures and non-residential fixed investment were primarily offset by upward revisions to state and local government spending and exports, the latest report said. Imports, which are a subtraction in the calculation of GDP, were revised down. Non-residential fixed investment in the second quarter decreased by 1.0 percent, the first contraction since the first quarter of 2016.
Last week, the US Federal Reserve lowered interest rates for the second time this year, citing weakened business fixed investment and exports, as well as persistently subdued inflation.
“The main reasons appear to be slower growth abroad and trade policy developments — two sources of uncertainty that we have been monitoring all year,” Fed Chairman Jerome Powell told reporters at a press conference.
Three of the 10 members of the policy-making Federal Open Market Committee voted against the quarter-point rate cut decision, highlighting the growing split among monetary policymakers amid rising risks to, and uncertainties in, the US economy.