GDP Grew at 3.3% in Second-Quarter, Commerce Says

September 29, 2005 9:00 AM, EDT

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he U.S. economy grew at an annual rate of 3.3% in the second quarter, down from 3.8% in the first quarter, the Commerce Department said Thursday.

The gross domestic product growth rate matched a preliminary report issued in late August of second-quarter growth, though measures of inflation were higher than the government earlier reported.

GDP rose to $11.1 trillion when annualized and adjusted for inflation. Without adjustment, the economy grew at a 6% annual rate to $12.4 trillion for the quarter, compared with 7% in the first quarter, Commerce said.

The quarter was the ninth straight in which the gross domestic product was greater than 3%, the longest such string since the 13 quarters that ended in the first quarter of 1986.

Economists had forecast a 3.3% second-quarter rate, though they said expansion in the third quarter will be held in check by the aftereffects of Hurricanes Katrina and Rita, Bloomberg reported.