Secondquarter GDP growth revised down to 2.1
Consumer spending revised up; business investment pared
Corporate profits rebound in Q2; down yearonyear
Private payrolls increase 177,000 in August

WASHINGTON, Aug 30 Reuters The U.S. economy grew at a slightly less brisk pace than initially thought in the second quarter as businesses liquidated inventory, but momentum appears to have picked up early this quarter as a tight labor market underpins consumer spending.

The report from the Commerce Department on Wednesday also confirmed that inflation pressures moderated last quarter. The economy continues to expand despite 525 basis points worth of interest rate hikes from the Federal Reserve since March 2022.

The details of the report continue to point to an economy with positive underlying momentum and that demonstrated resilience in the face of elevated interest rates, tighter credit conditions and a weak global backdrop, said Lydia Boussour, a senior economist at EYParthenon in New York.

Gross domestic product increased at a 2.1 annualized rate last quarter, the government said in its second estimate of GDP for the AprilJune period. That was revised down from the 2.4 pace reported last month. Economists polled by Reuters had expected GDP for the second quarter would be unrevised.

Inventory investment was sharply revised down to show it declining at a 1.8 billion pace instead of increasing at the previously reported 9.3 billion rate. Inventories were a small drag to…