The U.S. economy grew at an annual rate of 1.2 percent in the second quarter this year, which is below market expectation, the Commerce Department said Friday.

The gross domestic product rose at a 1.2 percent annualized rate after a 0.8 percent increase in the first quarter, it said.

The growth in the second quarter was far below the market expectation of over 2 percent.

Companies were cutting back on their investments and reducing inventories amid uncertainty, while consumer spending remained robust, the Commerce Department said.