The US economy shrank at an annualised rate of 1% in the April-to-June quarter, government figures have shown.

The data was better-than-expected, with many economists predicting a slightly bigger contraction of 1.5%.

The pace of decline seems to be easing, after a revised 6.4% fall in GDP in the previous quarter, the Commerce Department said.

On Wednesday, the Federal Reserve’s influential Beige Book said US economic activity had "begun to stabilise".

Although, the second-quarter data was better than forecast, the Commerce Department said that the economy had shrunk by more than initially thought in the first quarter.

It has previously estimated a contraction of 5.5%.

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