Say Anything Blog

WASHINGTON (Reuters) - The U.S. economy grew solidly at a 3.4 percent annual rate in the second quarter, the government reported on Friday, just slightly below the first quarter's pace and with room to grow as stocks of unsold goods fell for the first time in two years.

While second-quarter growth eased from a 3.8 percent rate in the first three months of the year, it nonetheless marked the ninth straight quarter in which gross domestic product or GDP increased at a rate exceeding 3 percent, Commerce Department figures showed.

The first snapshot of second-quarter GDP matched Wall Street economists' expectations. The figure will be revised twice in coming months as more data on the economy's performance arrive.

GDP measures the value of all goods and services produced within U.S. borders.

Most measures of activity remained healthy in the second quarter, with consumer spending increasing at a 3.3 percent rate after growing at a 3.5 percent rate in the first quarter. Business investment advanced at a 9 percent rate after growing 5.7 percent in the first three months of the year.