GDP gains little ground

The economy grew at an annual rate of 1.9% in the second quarter, up from an increase of 0.9% in the first quarter, but a slower growth rate than had been expected. The data on real gross domestic product were released today by the Commerce Department’s Bureau of Economic Analysis, which credited the rise to a decrease in imports and an increase in exports, as well as acceleration in personal-consumption expenditures. The report also noted that a decrease in motor vehicle output caused real GDP to fall 1.07% in the second quarter, indicating the effect of poor growth in the automobile sector. The report also revised real GDP growth for the fourth quarter of 2007 to 0.2%, down from the 0.6% that was reported originally.