The U.S. second-quarter gross domestic product revisions proved surprising as they lowered the trajectory for growth, and portend a weaker third-quarter growth rate as spending slows in the key services area.

Second-quarter real GDP was revised down to 2.8% growth from the prior estimate of 3.3% growth. Personal consumption expenditure core prices are now a still-modest plus-2.2%. Real growth was up 0.9% in the first quarter and most probably is running somewhere between the pace of the first quarter and the second quarter currently.

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