US economic growth slows in second quarter, but domestic demand robust

WASHINGTON, July 30 (Reuters) - U.S. economic growth slowed in the second quarter amid a widening in the trade deficit, but an acceleration in consumer spending and robust business investment in equipment related to the buildout of artificial intelligence infrastructure pointed to underlying strength.

Gross domestic product increased at a 1.5% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its advance estimate of second-quarter GDP on Thursday. Economists polled by Reuters had forecast GDP rising at a 2.1% pace. Estimates ranged from a 0.8% rate to a 2.9% pace.

The survey was, however, conducted before the release of June's advance economic indicators report, which showed a moderate contraction in the goods trade deficit and retail inventories unchanged. That data prompted some economists to cut their GDP estimates by as much as 0.8 percentage point to as low as a 1.5% rate. The economy grew at a 2.1% pace in the first quarter.