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U.S. final Q2 GDP revised down to 1.3% from 1.7%

Published 09/27/2012, 08:39 AM
EUR/USD
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Investing.com - The U.S. economy grew less than previously expected during the second quarter of 2012, as consumer spending figures were revised lower, official data showed on Thursday.

In a report, the Bureau of Economic Analysis said gross domestic product increased at a seasonally adjusted annual rate of 1.3% during the second quarter, down from a previous estimate of 1.7%.

Analysts had expected the U.S. economy to grow at a rate of 1.7%.

According to the data, personal consumption was revised down to a 1.5% increase, down from a previous estimate of 1.7%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.

The report showed that the GDP price index rose 1.5% in the second quarter, below forecasts for a 1.6% gain.

A key measure of inflation, the core personal consumption index, which excludes food and energy prices, increased 1.7%, down from a previously reported 1.8% increase.

The government provides three estimates of economic growth per quarter, with each reflecting more complete information than the last.

Following the release of the data, the U.S. dollar was lower against the euro, with EUR/USD adding 0.07% to trade at 1.2883.

Meanwhile, U.S. stock index futures held on to gains. The Dow Jones Industrial Average futures pointed to a rise of 0.45% at the open, S&P 500 futures indicated a gain of 0.5%, while the Nasdaq 100 futures signaled an increase of 0.35%.

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