Reuters reported the economy fared slightly better than initially reported in the second quarter, however the pace of growth remained too slow to remove the option for further monetary easing from the Federal Reserve.
 
As reported, gross domestic product expanded at a 1.7% annual rate, according to the Commerce Department, as stronger export growth offset a pull-back in restocking by businesses wary of sluggish domestic demand.

Growth in business investment in equipment and software was lowered to a 4.7% pace, the slowest since the third quarter of 2009, from 7.2% previously. Growth in spending by businesses on equipment and software has slowed sharply from a peak of 18.3% in the third quarter of last year, and the retrenchment appears to have intensified early this quarter.

Reuters also notes stronger than previously reported investment in the construction of nonresidential structures gave a lift to GDP growth in the second quarter.