US economy growth revised slightly higher for Q2

The US economy grew slightly more than first estimated in the second quarter but remained sub-par, a government update showed Wednesday. The Commerce Department said gross domestic product -- a broad measure of the nation's goods and services -- rose at an annualized rate of 1.7 percent in the April-June period. Its initial July estimate of GDP growth was 1.5 percent. The reading was slightly better than the 1.6 percent rate expected by most analysts, but remained sluggish compared with the first quarter's 2.0 percent pace. The Commerce Department said the update to last month's first estimate mainly reflected a downward revision to imports, which subtract from GDP, and upward revisions to consumer spending, exports, and state and local government spending. The improvement in the US trade balance, with better exports, and a jump in spending in the massive service sector, signals growth and jobs, Robert Brusca at FAO Economics said. "Good news... an improved composition of growth -- more final demand less inventory-building," he said.