The U.S. economy performed slightly better in the second quarter than initially reported, but the pace of growth remained relatively slow, the government said Wednesday. The Commerce Department reported that second-quarter gross domestic product (GDP) expanded at a 1.7 percent annual rate as stronger export growth offset a decline in restocking by businesses wary of sluggish domestic demand. The new figure was up from a 1.5 percent growth rate estimated last month and in line with economist expectations. The economy grew at a 2.0 percent annual rate in the first quarter. Despite the slight improvement, GDP growth remains well below the 2 to 2.5 percent rate required every quarter to hold the unemployment rate steady. The jobless rate rose to 8.3 percent in July, and the weak economy seriously threatens President Barack Obama's chance for re-election.
