"Consumers are still driving GDP but only at a very modest pace"
- Thomas Simons, an economist at Jefferies Group Inc.
The world's biggest economy grew less than predicted during the second quarter of 2012, as consumer spending and business investment declined, the Bureau of Economic Analysis said on Thursday. Nation's gross domestic product increased at a seasonally adjusted annual rate of 1.3%, down from a previous estimate of 1.7%.
"Consumption is not good," said Thomas Simons, an economist at Jefferies Group Inc. in New York. "Consumers are still driving GDP but only at a very modest pace."
Also Thursday, the U.S. Department of Labor said that the number of Americans who filed jobless benefits claims fell more than expected and reached a two-month low in the week ending September 22. Initial jobless claims dropped by 26,000 to a seasonally adjusted 359,000, compared to expectations for a fall of 7,000 to 378,000, while down from 385,000 in the previous week.
The Standard & Poor's 500 added 0.96 per cent to 1,447.15. The Dow Jones Industrial Average edged higher 0.54 per cent to 13,485.97. The Nasdaq Composite rose 1.39 per cent to 3,136.60.
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