In addition, the U.S. government revises its estimate of GDP for the first quarter. In June, it expected the first three months of the year growth of 1.9%, now revised to 0.4%.
Since the beginning of the year, the world’s largest economy continues to disappoint. The U.S. GDP grew at a rate too slow to lower unemployment.
The U.S. economy is affected by higher raw material prices, supply disruptions in the wake of the earthquake in Japan in March and market uncertainty.
In the second quarter, business investments have helped boost growth when the American consumer and public spending stagnated.
The slow economic recovery also increases the estimated tax revenue of the U.S. government, when Republicans and Democrats still cannot agree on reducing the deficit and debt ceilings. Washington may end up in default if no agreement is reached by next Tuesday.