NEW YORK (

TheStreet

) -- The latest estimate of economic growth was dismal but expected.

The government slashed its second estimate of second-quarter gross domestic product to 1% from its prior estimate of 1.3%.

The Commerce Department's first estimate last month had already been a major disappointment. Since then, the steady stream of firms ratcheting down their own expectations for growth have seemed to crystallize market fears about the potential for a double-dip recession.

The consensus view for the latest revision was down to 1.1%, while Briefing.com saw a dip down to 1%. First quarter GDP growth is estimated at 0.4%.

Slower growth in exports and inventories chipped away at GDP growth, while an upwards revision in consumption helped overall growth.

Personal consumption increased 0.4% compared to the first estimate where it had tapered to a meager 0.1% increase. Despite the upward adjustment to personal consumption, however, the figure is still down significantly from a 2.1% increase in the first quarter.

There's "probably a little bit of comfort taken by people that the US consumer was not as weak as previously feared but this release is definitely not a reason to suddenly feel bullish," writes David Semmens, economist with Standard Chartered Bank.

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-- Written by Chao Deng in New York.

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