The US economy slowed in the second quarter, growing at an annualized rate of 1.5 percent. According to advance data released by the US Commerce Department, this figure fell short of the market expectation of 2.1 percent. The economy had recorded 2.1 percent growth in the first three months of the year.
The slowdown in growth was driven by a decline in government spending and a loss of momentum in investment and exports. An increase in consumer spending partially offset these effects. Stronger import growth in the second quarter also contributed to limiting growth.
Inflation data
The personal consumption expenditures price index rose 5.1 percent in the April-June period. The core index, excluding food and energy, increased 3.4 percent, slightly below the 3.5 percent expectation. The core index had risen 4.4 percent in the first quarter.
Rise in jobless claims
According to data from the US Labor Department, initial jobless claims rose by 9,000 to 197,000 in the week ending July 25. The market expectation was 201,000. The previous week's figure was revised to 188,000.
The four-week moving average of claims fell to 202,750, while continuing claims dropped to 1,782,000 in the week ending July 18.