US Q2 GDP shrinks less than expected

The US economy contracted in the second quarter at a slower pace than previously thought,while a surprise slide in manufacturing activity in the country8217;s Midwest region in September pointed to a patchy recovery from recession. Gross domestic product,which measures total goods and services output within US borders,fell at a 0.7 per cent annual rate instead of the 1.0 per cent decline it reported last month,the Commerce Department said on Wednesday. This was better than market expectations for a 1.2 per cent contraction and an improvement from the first quarter,when GDP fell at a 6.4 per cent rate. On the manufacturing front,however,the Institute for Supply Management-Chicago said its business barometer fell to 46.1 in September from 50.0 in August.