The US economy stayed on a path of recovery from its deep recession as output shrank at an unrevised 1% annual pace in the second quarter, the government said today.
The figure for gross domestic product was better than expected by analysts, who had forecast a revision showing a 1.5% pace of decline.
The Commerce Department figures reflect an easing of the deep recession that led to a 6.4% pace of decline in the first quarter.
The revised report showed a drop of 1% in consumer spending, the main driver of economic activity, instead of the prior estimate of a 1.2% decline.
Motor vehicle output added 0.2 percentage points to the GDP after subtracting 1.69 percentage points from the first-quarter change. Federal government spending increased 11% in the second quarter, in contrast to a decrease of 4.3% in the first.
But the housing sector remained a drag on the economy, with real residential fixed investment falling 22.8%, compared with a decrease of 38% in the prior quarter.
Exports fell 5% while imports decreased 15.1% - a phenomenon that contributes to GDP because it means more production is domestic based.
A big drawdown in inventories subtracted from growth, although economists say this opens the way for increased activity because businesses will need to rebuild stockpiles.
