Slump in investment holds back US growth

Second-quarter figure lower than expected despite solid consumer spending

US second-quarter growth disappoints Pic: Getty

The US economy expanded by less than forecast in the second quarter after a weaker start to the year than previously estimated as companies slimmed down inventories and remained wary of investing amid shaky global demand.

Gross domestic product rose at a 1.2 per cent annualised rate after a 0.8 per cent advance the first quarter, Commerce Department figures showed. The median forecast of economists surveyed by Bloomberg called for a 2.5 per ...