Accessibility links

US Economic Growth Slows Slightly; Experts Ponder Hurricane Impact

The U.S. economy grew a little more slowly than first thought during April, May, and June.

Wednesday's update of gross domestic product growth in the second quarter shows the economy expanding at a healthy 3.3 percent.

The Commerce Department says that is a little less (0.1 percent less) than first thought. It is also half a percent below first quarter growth.

The new figures do not take into account the damage done to the U.S. energy industry by Hurricane Katrina. Analysts say hurricane damage is likely to crimp energy supplies and boost prices.

Economists are revising their predictions of future economic growth as they get more detailed reports of the damage and the time needed to repair it.

Higher energy costs can hurt the economy by leaving consumers and businesses with less money to spend on other goods.

Some information for this report provided by AFP and Reuters.