US GDP grew 1.6% in Q2

The US economy grew at a 1.6 per cent annual rate in the second quarter, less than previously calculated, as companies reined in inventories and the trade deficit widened.

The revised gain in gross domestic product was bigger than the median forecast of economists surveyed and compares with a 2.4 per cent estimate issued last month, figures from the Commerce Department showed. Corporate profits grew last quarter at the slowest rate in a year and employee wages in the prior three months were revised lower.

Recent figures showing slowdowns in housing, business investment and consumer spending are prompting economists to cut second-half growth forecasts.