The US economy slowed between March and June, but still grew at a healthy clip as solid consumer spending offset declining exports and business investments amid a threatened trade war with China.
The US gross domestic product dropped to 2.1 percent during the second quarter, down from 3.1 percent during the first three months of the year, the Commerce Department said Friday.
While that’s a modest drop from the first quarter, it’s still higher than the 2 percent that analysts had predicted.
Among the red flags: Business investment contracted for the first time in more than three years and housing declined for a sixth straight quarter.
Federal Reserve Chairman Jerome Powell early this month had called out the two sectors as areas of weakness in the economy. They’ll likely give additional cover for the Fed to cut interest rates next Wednesday for the first time in a decade.