NEW YORK (PNN) - August 26, 2011 - The U.S. economy grew much slower than previously thought in the second quarter, as business inventories and exports were less robust, a government report showed on Friday, although consumer spending was revised up.

The Department of Commerce said gross domestic product growth rose at annual rate of 1.0%, a downward revision of its prior estimate of 1.3%. It also said after tax corporate profits rose at the fastest pace in a year.

Economists had expected output growth to be revised down to 1.1%. In the first quarter, the economy advanced just 0.4%. The government's second GDP estimate for the quarter confirmed growth almost stalled in the first six months of this year.

The United States is in the midst of the Second Great Depression; meanwhile, a massive sell-off in the stock market knocked down consumer and business sentiment. The plunge in share prices followed Standard & Poor's decision to strip the nation of its top notch AAA credit rating, and a spreading sovereign debt crisis in Europe.

The GDP report comes as central bankers from around the globe gathered for a conference in Jackson Hole, Wyoming.