PARIS, Aug 25 (Reuters) – The U.S. economy contracted a little less than initially estimated in the second quarter, despite the backdrop of tighter monetary policy by the Federal Reserve (Fed).
The gross domestic product (GDP) of the world’s largest economy fell 0.6% at an annualized rate over the April-June period, according to the Commerce Department’s second estimate released on Thursday, against a drop of 0.9% in first estimate.
Economists polled by Reuters on average expected a contraction of 0.8% in the second quarter.
The so-called “core PCE” basic price index, closely watched by the Federal Reserve, was confirmed at +4.4% on an annual basis after an increase of the same magnitude in the first quarter. (Written by Claude Chendjou, edited by Sophie Louet)