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US growth weakens following drought

US ECONOMIC growth was much weaker than previously estimated in the second quarter as a drought cut into inventories. This sets the platform for an even more sluggish performance in the current quarter against the backdrop of slowing factory activity.

Gross domestic product expanded at a 1.3pc annual rate. This was the slowest pace since the third quarter of 2011 and down from last month's 1.7pc estimate, the Commerce Department said in its final estimate yesterday.

Output was also revised downwards to reflect weaker rates of consumer and business spending.

Irish Independent