The U.S. economy grew at a solid 3.4 percent annual rate in the second quarter, the government reported on Friday, just slightly below the first quarter's pace and with room to grow as stocks of unsold goods fell for the first time in two years, Reuters reported. While second-quarter growth eased from a 3.8 percent rate in the first three months of the year, it did mark the ninth straight quarter that gross domestic product increased at a rate exceeding 3 percent, Commerce Department figures showed. The first snapshot of second-quarter GDP growth matched Wall Street economists' expectations, while key inflation measures were mostly muted. The report will be revised twice in coming months as more data is assembled. GDP measures the value of all goods and services produced within U.S. borders. Separately, the Labor Department reported that employment costs continued to gain moderately in the second quarter, by 0.7 percent, matching the first quarter's pace. The Employment Cost Index is a broad measure of what employers pay in wages and benefits. The second-quarter data showed pay increased 0.6 percent in the April-June period, matching the gain recorded in the January-March quarter. Most measures of GDP activity remained healthy in the second quarter, with consumer spending increasing at a 3.3 percent rate after growing at a 3.5 percent rate in the first quarter. Business investment advanced at a 9 percent rate after growing 5.7 percent in the first three months of the year.
