The U.S. economy grew 2% during the second quarter, down slightly from the initial reading of 2.1%. Growth in consumer spending, which accounts for more than two-thirds of U.S. economic activity, surged at a 4.7% rate in Q2. That was the fastest since Q4 of 2014 and was a slight upward revision from the initial reading of 4.3%. Business investment declined at an unrevised pace of 0.6% in Q2 while trade chopped off 0.72% from growth and inventories shaved off 0.91%. The latest reading from the Atlanta Fed pins Q3 GDP growth at 1.5% and this is below the 2% average estimate from economists. In general, retail sales have provided a positive boost to Q3 GDP estimates while trade and business spending have been a headwind.
