Second-Quarter GDP Growth Less Than Previously Reported

Adjusted for inflation, the U.S. economy grew at an annual rate of 2.6% from April through June, three-tenths of a percentage point less than its most recent estimate, the U.S. Commerce Department reported on September 28.

It was the department's third and final accounting for second-quarter GDP. The department initially reported growth at a 2.5% annual rate and, about a month ago, revised that upward to 2.9%.

A downward revision in private-sector inventories, an upward revision in imports of services and a downward revision in residential fixed investment were responsible for the lower final figure, the department said.

In its most recent forecast, New York-based Merrill Lynch & Co. figured third-quarter 2006 GDP growth at 1.7% and fourth-quarter growth at 2%. Waltham, Mass.-based Global Insight estimates third-quarter growth at 2.4% and fourth-quarter growth at 1.8%.

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