US economic growth was revised lower in the second quarter to a still solid pace, but momentum appears to have picked up at the start of the third quarter as consumer spending is supported by a tight labour market.

U.S. gross domestic product expanded at an annualized rate of 2.1 percent in the second quarter, the government said today in its second estimate of GDP for the three months from April to June. That was revised down from the 2.4 percent pace reported last month.

The result is not exactly ideal, BUT the economy is growing at a pace well above what Fed officials consider a non-inflationary growth rate of about 1.8 percent.