The U.S. economy continued to shrink in the second quarter, according to new government statistics released Friday, although the pace of contraction slowed by more than economists had been expecting.
The U.S. Commerce Department revealed that Gross Domestic Product, a closely watched measure of broad economic performance, fell at a pace of 1 percent for the second quarter. Economists had expected GDP to fall at a 1.5 percent rate.
This marks the fourth consecutive quarter of contraction, but the pace slowed considerably from the 6.4 percent decline that was seen in the first 3 months of the year.
While the moderated pace of decline is a step toward economic stability, experts are uncertain about the second-quarter report, noting that components of the report were mixed.
"We are set up for an improvement in inventories and trade, but consumer spending still remains in question."
Personal consumption was down 1.2 percent in the second-quarter report, significantly more than economists had been expecting. This followed a 0.6 percent increase in the first quarter.
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