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US economic growth revised down

The US economy grew at a much slower pace this spring than previously estimated, mostly due to the largest surge in imports in 26 years and a slower build-up in inventories.

The Commerce Department said the country's gross domestic product - the broadest measure of the economy's output - grew at a 1.6% annual rate in the April-to-June period - down from an initial estimate of 2.4% last month and much slower than the first quarter's 3.7% pace.

Many economists had expected a sharper drop.

The economy has grown for four straight quarters, but that growth has averaged only 2.9%, a weak pace after such a steep recession.

The economy needs to grow at about 3% just to keep the unemployment rate, currently at 9.5%, from rising.

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From Belfast Telegraph