US economic activity continued to shrink in the second quarter of the year, making this recession the longest on record, but the pace of contraction slowed as aggressive government spending propped up the economy.

US gross domestic product declined by an annualised rate of 1 per cent in the second quarter after plunging by a revised 6.4 per cent during the first three months of the year, according to official figures.

The data showed that the stimulus and a slowdown in imports cushioned the drop. – Copyright The Financial Times Limited 2009