U.S. GDP rises 3.4 percent

U.S. GDP rises 3.4 percent

The economy slowed very slightly in the second quarter according to data released by the U.S. Commerce Department today. The gross domestic product rose 3.4 percent in the second quarter of 2005 which marks a 0.4 decrease from the first quarter. The figure does, however, closely match predictions that the GDP would rise about 3.5 percent. Much of the GDP’s drag could be attributed to decreased production due to companies burning through existing inventories. Economists now feel confident that growth will increase as companies begin ramping up production in the third quarter. Despite slowing somewhat, the GDP numbers leave little doubt that U.S. economy continues to move forward and expand. It is the ninth consecutive quarter in which the GDP has seen growth above 3 percent.