Economic growth slows to 1.6 percent in the spring

WASHINGTON (AP) — The economy grew at a much slower pace this spring than previously estimated, mostly due to the largest surge in imports in 26 years and a slowdown in companies' restocking of goods.

The nation's gross domestic product — the broadest measure of the economy's output — grew at a 1.6 percent annual rate in the April-to-June period, the Commerce Department said today. That's down from an initial estimate of 2.4 percent last month and much slower than the first quarter's 3.7 percent pace.

The revision follows a week of disappointing economic reports. The housing sector is slumping badly after the expiration of a government homebuyer tax credit. And business spending on big-ticket manufactured items such as machinery and software, an important source of growth earlier this year, is also tapering off.

As a result, most analysts expect the economy will grow at a similarly weak pace for the rest of this year.