Our Terms of Service and Privacy Policy have changed.

By continuing to use this site, you are agreeing to the new Privacy Policy and Terms of Service.

GDP report: Economic growth slightly faster

By Annalyn Censky, staff reporter

NEW YORK (CNNMoney.com) -- The economy grew at a slightly faster pace in the second quarter than previously thought, but the pace of growth is still painfully slow.

The nation's gross domestic product, the broadest measure of economic activity, was upwardly revised to an annual growth rate of 1.7% in the three months ending in June, the Commerce Department said Thursday.

While a slight uptick came as good news, the minor revision wasn't a major shocker either. Economists surveyed by Briefing.com had forecast the number to stay unchanged at 1.6%.

Less than 2% GDP growth is considered too sluggish to prompt businesses to start hiring again

"A little bit of good news is better than a little bit of bad news, but it's still just little," said Robert Brusca, chief economist, Fact and Opinion Economics.

Thursday's number is the government's third estimate for second-quarter GDP, after it sharply dropped its forecast in August from an initial 2.4% growth rate.

That revision was so dramatic, it shocked Wall Street and soon after, two thirds of economists surveyed by CNNMoney.com increased their forecasts for a double-dip recession.

But while the odds of the nation slipping back into recession are higher, they are still relatively unlikely at about one-in-four, the survey showed. But most economists are still predicting a weak economy going forward.

Overall, GDP continues to be dragged down by a widening trade deficit between the United States and foreign exporters, said Mark Vitner, senior economist with Wells Fargo.

But the report did contain a small sign of hope for the recovery, he said: spending by both consumers and businesses was up significantly from the prior quarter, and investments in new equipment and software alone were up nearly 25%.

"When you look into the details of the report, consumer spending and business investment actually ticked up," Vitner said. "They're not off the charts, but they are posting very solid gains. So in some ways the economy looks a bit firmer."

The Commerce Department calculates GDP as a measure of goods and services produced by labor and property in the United States. The government often revises the number multiple times. To top of page

Index Last Change % Change
Dow 17,798.49 -14.90 -0.08%
Nasdaq 5,127.53 11.38 0.22%
S&P 500 2,090.11 1.24 0.06%
Treasuries 2.22 -0.01 -0.31%
Data as of 1:14am ET
Company Price Change % Change
General Electric Co 30.36 0.00 0.00%
Bank of America Corp... 17.48 0.04 0.23%
HP Inc 12.61 -0.03 -0.24%
Pfizer Inc 32.79 -0.08 -0.24%
Walt Disney Co 115.13 -3.54 -2.98%
Data as of Nov 27


Sumner Redstone, the media mogul who controls Viacom and CBS, is at the center of a legal dispute. One side says he is practically unable to make decisions for himself. The other says he is "engaged and attentive." More

Gold futures hit a low of $1,051.60 an ounce, yet another reminder of just how out of favor gold has become since its all-time high of nearly $1,890 in 2011. More

Watsi crowdfunds donations to cover healthcare costs of those in need. And it's seeing a surprising trend: micro-donations via the popular Chinese social networking app, WeChat. More

Hive, a startup funded by the UN, is tasked with getting more Americans engaged with the refugee crisis. More

Shoppers around the country braved the crowds to get their hands on the best Black Friday deals. More