U.S. economy grew slower last quarter than initially estimated

The economy has grown slower than predicted.

(Image credit: Mario Tama/Getty Images)

Initial estimates of the economy's growth last quarter turned out to be overconfident, new data released Friday shows. The latest gross domestic product figures released by the Commerce Department found the value of goods and services produced last quarter actually increased at a 1.1 percent rate, down from the 1.2 percent rate initially reported.

The report did, however, reveal a higher rate of household consumption and an increase in worker wages, indicating that some of the sluggishness caused by falling government spending was offset by increased personal wealth and consumer spending.