Farm Losses Slow GNP Growth

The U.S. economy grew slower than previously estimated between April and June, slipping from its pace during the first quarter of 1988 mainly because of drought-induced crop losses, the government said today.

The gross national product rose at a seasonally adjusted annual rate of 3.0% in the second quarter of the year instead of the 3.3% increase estimated in August, the Commerce Department said. The downward revision affirmed that the economy slowed from its more robust 3.4% rate of the first three months of the year and helped ease some financial analysts’ concern about an overheated economy that could rekindle inflation.