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U.S. Economy Expands 2.3% in Second Quarter

Wall Street Journal (07/30/15) Kate Davidson; Eric Morath

Gross domestic product grew at a 2.3% seasonally adjusted annual rate in the second quarter, according to the U.S. Department of Commerce. Economists polled by the Wall Street Journal had forecast 2.7% growth. The economy grew at an upwardly revised 0.6% rate in the first quarter, rather than contracting 0.2%. GDP has risen this year at an average annual rate of 1.5%, compared with 1.9% in the same period a year ago. The slow growth was attributed to a stronger dollar, tepid business investment, and weak consumer spending.

Newly revised data show the expansion of the economy since the end of the recession in 2009 was weaker than previously thought. From 2012 through 2014, GDP rose at an average annual rate of 2%, a 0.3 percentage-point downgrade from prior estimates.