By CountingPips.com
The U.S. economy expanded in the second quarter of 2010 for a fourth straight quarter but at a slower pace than previously reported, according to a release by the U.S. Commerce Department. The second government estimate showed that the U.S. Gross Domestic Product grew on an annualized basis by 1.6 percent in the April to June quarter following a real 3.7 percent growth rate in the first quarter.
The first estimate for the second quarter, released in July, had shown GDP growth by 2.4 percent. This marks the fourth consecutive quarter of U.S. economic growth after 
the GDP had fallen for four straight quarters over the second half of 2008 and the first half of 2009.
The latest data surpassed market forecasts that were expecting GDP growth to be revised to 1.4 percent for the quarter.
Contributing to the lower economic growth was a decrease in private business inventories when compared to the first released estimate. Private business inventories added $63.2 billion in inventories for the second quarter which contributed 0.63 percentage points to the GDP . The first estimate had shown $75.7 billion added in private inventories and 1.05 points added to the GDP growth.
Consumer spending was revised higher and rose by 2.0 percent in the second quarter following the 1.9 percent increase registered in the first quarter. Consumer spending makes up roughly two-thirds of U.S. economic activity and the second quarter increase marks the largest gain since the first quarter of 2007.
Imports increased more than previously thought as imports surged by 32.4 percent (from previous 28.8 percent) in the second quarter following a first quarter rise of 11.2 percent. Exports of goods and services, meanwhile, grew by 9.1 percent in the second quarter following a gain of 11.4 percent in the first quarter.
Spending by the federal government rose by 9.1 percent following a 1.8 percent expenditure in the first quarter and was unchanged from the first estimate from July.
The third release for the U.S. GDP is scheduled for September 30, 2010 at 8:30 A.M. EDT.
