Economy in U.S. Grew at 1.1% Rate, Less Than Initial Estimate

The world’s largest economy grew less than previously reported in the second quarter, a sign consumer spending will need to continue to drive expansion, Commerce Department figures showed Friday in Washington.

The economy’s failure to develop a sustained pickup has helped keep Federal Reserve policy makers from pulling the trigger on an interest-rate increase so far this year. Economists project a third-quarter rebound driven by household purchases and more stockpiling, and the report showed wages and salaries were revised sharply higher, indicating consumers have the wherewithal to continue spending. A weakening picture for profits casts a shadow over the outlook for already-sluggish business investment and possibly for hiring, which has been robust so far this year.