The US economy grew marginally faster in the second quarter than previously expected, according to figures released today by the Commerce Department, but the pace of growth is still painfully slow.
Gross domestic product, the broadest measure of economic activity, was upwardly revised to an annual growth rate of 1.7 percent in the three months ending in June.
This is the government's third estimate for second-quarter GDP, after an initial report of a 2.4 percent growth rate was revised sharply downwards to 1.6 percent in August, creating fears of a double-dip recession.
Despite this marginal gain, GDP growth of less than 2 percent is still considered too slow to encourage businesses to start hiring again, so it's no surprise that economists are predicting a weak economy going forward.
There has been an unexpected fall in new applications for unemployment benefits, however. Initial jobless claims decreased by 16,000 in the week ended Sept. 25, Labor Department figures showed, compared to an expected 5,000 reduction.
The Commerce Department calculates GDP as a measure of goods and services produced by labor and property in the United States. The government often revises the figures a number of times.
