Marilyn Schaja, an economist with Donaldson, Lufkin & AMP; Jenrette, saw the revised figure as confirming that growth during the quarter was dominated by inventory accumulation.
32.
"The basic message is that as of April, the business sector hadn't managed to make any real progress in reining in inventory accumulation, " said Dederick.
33.
"The report for second-quarter GDP showed a sharp reduction in inventory accumulation, suggesting business has come close to restoring inventories to preferred levels, " he said.
34.
Debt-strapped consumers " don't have the wherewithal to keep spending, government spending is going to taper off and inventory accumulation can't keep up at this pace ."
35.
Now, " we expect subdued inventory accumulation to continue in the months ahead, " said a research report by analysts at NationsBank Corp . in New York
36.
Weaker capital spending and slower inventory accumulation accounted for the bulk of the revisions, said J . Steven Landefeld, director of the department's Bureau of Economic Analysis.
37.
It is not the overall economic growth rate which is likely to draw the market's attention, but more the report's components of final sales and inventory accumulation.
38.
Now, " We expect subdued inventory accumulation to continue in the months ahead, " said a research report by analysts at NationsBank Corp . in New York
39.
In the first quarter, for example, the economy grew at a 2 . 7 percent annual rate, when the pace of business inventory accumulation was much faster.
40.
In the first quarter, inventory accumulation accounted for $ 48.6 billion of the economy's output of more than $ 7 trillion, at a seasonally adjusted annual pace.
