IMF sees slower-than-expected US growth

THE US economy looks like it grew more slowly than expected in the second quarter, the International Monetary Fund has said in a report.

"Recent indicators point to a sharper than expected slowdown in economic activity in the second quarter," IMF experts said on Friday following annual consultations with the US.

"This reflects weakness in inventory accumulation and net exports as well as slower private consumption growth as suggested by retail sales in June."

The pullback in consumer spending poses a sharp drag on growth as it fuels about two-thirds of activity in the world's largest economy.

The US government is set to release its first estimate of gross domestic growth for the second quarter on Wednesday.

First-quarter GDP growth was at a tepid annual rate of 1.8 per cent as the economy still struggles to recover from the Great Recession that ended four years ago.

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