Economic Report: U.S. economy grows only 1.2% in Q2, below expectations

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The economy grew less than expected in the second three months of the year, raising questions about its momentum.

Gross domestic product grew at a seasonally adjusted annual rate of 1.2% in the second quarter, the Commerce Department said Friday. Economists surveyed by MarketWatch had expected a 2.6% pace.

That was slightly better than the 0.8% growth notched in the first quarter, a rate previously estimated at 1.1%, but still far from the growth the U.S. has enjoyed in earlier recoveries.

The data was released just two days after the Federal Reserve, more reassured about the economy than they were in June, seemed to open the door to a second interest rate hike in September.

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