US GDP growth slows to 2.1 percent in Q2

US gross domestic product (GDP) grew at a 2.1-percent annual rate in the second quarter, decelerating from the 3.1 percent expansion in the previous quarter, data released Friday by the US Department of Commerce showed.

Growth in the second quarter, according to the Commerce Department, was mainly driven by consumer and government spending, while negative contributions from investment offset those gains.

Meanwhile, imports, which have been subtracted from the calculation of GDP, increased, the Commerce Department said.

Personal consumption expenditures rose 4.3 percent, the most significant increase since the fourth quarter of 2017. Government consumption expenditures and gross investment were up 5 percent, the best record since the third quarter of 2015.

The core personal consumption expenditures price index, an inflation gauge preferred by the Federal Reserve that excludes the volatile food and energy prices, increased 1.8 percent, continuing to undershoot the Fed's 2 percent inflation target.

However, gross private domestic investment saw a drastic decline of 5.5 percent, the worst since the fourth quarter of 2015. Current-dollar personal income, meanwhile, increased $244.2 billion in the three-month period, also a slowdown compared with an increase of $269.8 billion in the first quarter.

Friday's "advance" estimates are based on data that is incomplete or subject to further revision, the department said, adding that the second estimate is scheduled for Aug 29.