The U.S. economy grew more sluggish than initially estimated in the second quarter, and corporate profits nearly dried up, further evidence that the recovery is losing steam.
Gross domestic product, the value of all goods and services produced, rose at an annualized seasonally adjusted rate of 1.6% from April to June, the Commerce Department said Friday.
Economic growth in the second quarter was revised downward, but came out better than expected, providing a glimmer of hope….
In the government’s first report of the economy’s benchmark indicator a month ago, the growth rate was estimated to have slowed to 2.4% after a 3.7% expansion in the first quarter….
Friday’s report also showed that companies barely managed to post profit gains, following several very profitable quarters. After-tax earnings edged up 0.1%, well off the previous quarter’s gain of 11.4%. First-quarter profits were revised down from the initial estimate of a 12.1% increase.