August 30, 2002	Friday	Jamadi-us-Saani 20, 1423

WASHINGTON, Aug 29: The pace of US economic growth slowed sharply in the second quarter, the government confirmed on Thursday, but businesses showed signs of a renewed willingness to invest and improved bottom lines.

Gross domestic product, the broadest measure of goods and services produced in the United States, grew at a 1.1 per cent annual rate, down from a 5 per cent rate for the first quarter, the Commerce Department said. It was the department’s second estimate for the spring quarter, and was the same as the initial estimate, which it made in July.

Within the report, however, there were signs that American businesses were managing to ride out the slowdown. After-tax corporate profits were up for a second consecutive quarter, rising 1.7 per cent after a 2 per cent gain in the first three months of the year.

Overall business investment was revised downward, falling at a 2.6 per cent rate, spending on new equipment and software was revised upward to a 3.1 per cent pace, the first gain since the third quarter of 2000.

—Reuters