The Commerce Department reported that the rate of economic growth in the U.S. during the second quarter was revised downward from the advance estimate of 2.4 percent provided last month to just 1.6 percent, equal to the rate seen in the third quarter of 2009 when the economy first began expanding again after more than a year of contraction.

The new figure was better than analysts’ expectations for a 1.4 percent rate, lower net exports and a smaller inventory gain being the major factors in the downward revision. The surge in imports subtracted a full 3.4 percentage points from economic growth, the biggest impact by the trade deficit in 63 years.

Consumer spending was revised upward, from a previously reported rate of 1.6 percent to 2 percent to offset other downward revisions,  and business spending continued to be the major factor in the overall gain, increasing almost 25 percent from the first quarter.