WASHINGTON — Real gross domestic product expanded 1.3% at an annual rate in the second quarter, well below economists’ estimates, while consumer spending was the weakest in two years, the Commerce Department reported Friday.
The first-quarter GDP was revised sharply lower to a 0.4% increase annually from a 1.9% gain reported last month. Today’s report included data revisions for the last three years. The economy expanded 3.0% in 2010, contracted 3.5% in 2009, and contracted 0.3% in 2008, the new figures show, revealing the recession was much deeper than originally estimated.
Economists expected second-quarter GDP would increase 1.8%, according to the median estimate from Thomson Reuters.
Core personal consumption expenditures, excluding food and energy goods, increased 2.1% on an annual basis in the second quarter. Core PCE gained 1.6% in the first quarter.
Economists expected core PCE would rise 2.2%.