Inventory liquidation weighs on U.S. second-quarter GDP growth

The U.S. economy grew far less than expected in the second quarter as inventory investment fell for the first time in nearly five years, but a surge in consumer spending pointed to underlying strength. Economists had forecast GDP growth rising at a 2.6 percent rate in the last quarter. While the inventory drawdown weighed on GDP growth, that is likely to provide a boost to output for the rest of the year.