REUTERS/Brian Snyder

The American economy expanded at a slower pace than initially thought in the second quarter.

The Commerce Department estimated Thursday that US gross domestic product, a measure of all the goods and services produced in a country, rose 2% from April to June.

The results dimmed the prospect that the White House would reach its growth estimates for the year.

Visit Markets Insider for more stories.

The American economy expanded more slowly than previously expected but remained at a solid pace in the second quarter as stronger consumer spending only partially offset weaker exports and business investment amid the Trump administration's trade disputes.

The Commerce Department on Thursday estimated that gross domestic product, a measure of all the goods and services produced in a country, rose by 2% from April to June. That was lower than the 2.1% growth that was originally reported and the 3.1% growth from the previous quarter.

Consumer spending, which accounts for more than two-thirds of activity in the US economy, remained one of the brightest spots. That measure picked up to a robust pace of 4.7% growth in the second quarter, its fastest pace since 2014.

Other measures out Thursday suggested tariffs President Donald Trump had levied on major trading partners dragged on growth by more than originally thought in the second quarter. The trade deficit, which has been volatile over the past year, widened further to $982.5 billion as the outlook for exporters remained uncertain.

"The third quarter should be less uneven, but the outlook for capital spending is deteriorating rapidly in the face of slower earnings growth and uncertainty created by the trade war," said Ian Shepherdson, the chief economist at Pantheon Macroeconomics.

A key measure of inflation, the price index for personal-consumption expenditures, rose by 2.2% from April to June, slightly less than originally thought and compared with a 0.4% increase in the first quarter.

Thursday's results dimmed the prospect that the White House would reach its growth estimates for the year. The Council of Economic Advisers forecast a print of more than 3% this year, far above forecasts by the Federal Reserve and other independent economists.

The central bank lowered interest rates by a quarter percentage point in July, citing below-target inflation and trade uncertainty. Growth concerns have mounted since then, with a key recession warning this month flashing for the first time in more than a decade.

With strong consumer spending and a historically tight labor market, Fed Chairman Jay Powell signaled last week that he was not eager to ease at the pace the White House has pushed for. Trump has demanded central bankers slash rates by up to a full percentage point, an adjustment that would typically be made only during a downturn.

"While there is no doubt that the economy is cooling, taking this morning's read into historical context, we're actually still chugging along though," said Mike Loewengart, the vice president of investment strategy at E-Trade. "There remains a solid backdrop of fundamentals."

Markets Insider is looking for a panel of millennial investors. If you're active in the markets, CLICK HERE to sign up.

NOW WATCH: Most hurricanes that hit the US and Caribbean islands come from the same exact spot in the world