U.S. Slashes Q2 Growth to 1.6%

The government on August 27 slashed second quarter economic growth to a pace of 1.6%, from 2.4% projected previously.

It was slightly higher than expected by most economists who had expected gross domestic product (GDP) growth to be shaved by nearly half to 1.4%.

The cut in growth stemmed from mainly from a "sharp acceleration in imports and sharp deceleration in private inventory investment," the Commerce Department said.

Copyright Agence France-Presse, 2010