US economic growth slows in second quarter

Growth in the US abridgement slowed in the additional division to an annualised clip of 1.5%, as customer spending eased.

But advance in the aboriginal three months of the year was revised up to 2% from a antecedent appraisal of 1.9%, the Commerce Department said.

Previous abstracts was additionally revised to appearance the abridgement shrank by beneath during the 2007-9 recession than thought.

Despite the slowdown, the additional division advance abstracts were added good than accepted and US stocks rallied sharply.

The capital Dow Jones basis bankrupt up 188 points, or 1.5%, at 13,076, its accomplished akin back aboriginal May.

A collective account from French President Francois Hollande and German Chancellor Angela Merkel reasserting their charge to attention the euro additionally helped to advance Wall Street higher.

The Commerce Department's most recent abstracts showed the US abridgement shrank by 4.7% from the alpha of the recession in 2007 until it concluded in 2009.

It had beforehand been anticipation the abridgement apprenticed by 5.1% over that period.

Separately, in its twice-yearly review, the White House revised bottomward its anticipation for advance in 2012 to 2.3% from 2.7%, and in 2013 to 2.7% from 3%.

"The abridgement continues to face austere headwinds that accept abject advance and bound assets in employment," the address said.

The Commerce Department said the arrest reflected weaker customer spending, which grew by 1.5% in the additional quarter, compared with 2.4% advance apparent in the aboriginal quarter.

It additionally cited an dispatch in imports for the arrest in growth.

But it said there that these were partly account by an upturn in clandestine account investment, a abate abatement in federal government spending, and an dispatch in exports.

Exports of appurtenances and casework added by 5.3% in the additional quarter, up from 4.4% in the aboriginal three months.

Peter Cardillo, arch bazaar economist at Rockwell Global Capital, said the banderole advance cardinal was "a bit better-than-expected, but still the burning is weak".

"If the bread-and-butter abstracts abutting anniversary continues [to be weak], again apparently the bazaar can accumulate their hopes up that [the] Fed would eventually resort to added stimulus."

Last month, the US Federal Reserve cut its anticipation for bread-and-butter advance in 2012 to 2.4% from 2.9%.