commerce department report

The U.S. economy grew even more slowly during the second quarter than the government first thought, according to a Commerce Department report out Friday.

U.S. GDP grew at an annual rate of 1.6 percent; the earlier estimate was 2.4 percent. Meanwhile, at a gathering of central bankers in Jackson Hole, Wyo., Federal Reserve chairman Ben Bernanke said the Fed has the tools to stimulate the economy if it continues to weaken.

The economy grew for a second straight quarter from October through December, posting a 5.7 percent annual rate, the fastest pace since the third quarter of 2003.

The Commerce Department report is the strongest evidence to date that the worst recession since the 1930s ended last year.

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There have been signs lately that the recession is nearing an end. A Commerce Department report out Friday is further proof.

It indicates the economy slowed at a pace of just 1 percent in the second quarter of the year. The numbers were better than what had been expected.

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