Markets reacted positively to the news the US had not slowed to the 1.4% expected in the second quarter.
The S&P 500 was up 0.29% while the Dow Jones gained 0.27% as the economy grew at an annual rate of 1.6% in Q2. The FTSE 100 was up 0.18% to 5,164 in afternoon trading.
The second estimate for Q2, released by the Bureau of Economic Analysis, is less than the advance estimate issued last month which said real GDP was 2.4% for the second quarter.
The BEA blamed the decline on a sharp acceleration in imports, but commentators suggest poor housing sales and employment figures are also dragging on the economy.
The US is not sliding back into a 2008-style recession, says BlackRock's Kevin Rendino, despite these latest GDP figures showing a slowdown in economic growth.
"There has been a lack of recovery in the housing market and there is a lot of hesitancy to hire. Consumer discretionary and retail sales trends are also sluggish."
"A lot of this is to do with fears about the amount of debt on the Government's balance sheet, adds the manager of the £1.2bn BGF US Basic Value fund.
He also says there have been reports that 5% of GDP growth in the second quarter was caused by Government stimulus, so if this was taken out, the real figure could already be in recession territory.
"I think we are seeing a double dip in housing and retail sales but not a fully-fledged recession like we saw in 2008. These figures were not unexpected and equity prices are already reflecting this so to me it is meaningless.
"De-leveraging needs to take place and that could happen over the next two to three years. This is not helpful for the economy," Rendino adds.
He anticipates growth in the third quarter to be around the 1.6% level, certainly not accelerating any higher.
Jeremy Cook, chief economist at World First, is more fearful of the figures and says growth could fall much further.
"This is still a downgraded growth rate. Retail sales, consumer confidence, business spending are all still looking atrocious. The forward looking Durable Goods Orders measure, published on Wednesday, showed that the financial foundations are looking increasingly shaky across the pond for the third quarter. I fully expect to see a GDP figure below 1% for Q3. ‘Not as bad as expected' is the refuge of the double dip deniers today."
However, Paul Ashworth, Capital Economics' senior US economist, says there are some positive signs in the second estimate report. He says corporate profits increased and consumption growth is estimated to have accelerated slightly.
"Q2 wasn't as bad as the headline GDP figure looks but, unfortunately, that doesn't mean Q3 is going to be any better. It could easily be even worse. As it stands now, it looks like domestic sales growth slowed sharply," he says.
Investors are awaiting a speech to be given by Federal Reserve chairman Ben Bernanke in the next few hours in which he is likely to discuss the uncertain outlook for the US economy.
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