News Summary: US economy grew 1.3 pct. in Q2.
GROWTH SLOWER: The U.S. economy grew at a sluggish 1.3 percent annual rate in the April-June quarter, the Commerce Department said Thursday. That's down from the government's previous estimate of 1.7 percent growth and slower than the 2 percent rate In the January-March quarter.
DROUGHT IMPACT: The severe drought cut farm production in the Midwest, accounting for roughly half the downward revision. The government also said consumer spending and exports also grew more slowly.
ECONOMIC OUTLOOK: Economists forecast growth at a rate of 1.5 percent to 2 percent in the January-March quarter. That's too slow to lower the unemployment rate.