As widely expected, the US economy slowed in the second quarter to grow at a 1.5 percent annual rate, down from 2.0 percent in the first quarter. Consumer spending rose at a 1.5 percent rate, down from a 2.4 percent rate in the prior quarter.
Consumer spending is likely to stay weak at the start of the third quarter. The Thomson Reuters/University of Michigan final index of sentiment declined to 72.3 in July from 73.2 in June. The preliminary reading for July was 72.0.
Despite the weaker US economic data, markets were up on Friday. The S&P 500 rose 1.9 percent, completing the biggest two-day gain since December.
Investors are clearly factoring in the possibility of central bank action to stimulate the economy.
That seems likely in Japan where a report on Friday showed that core consumer prices fell 0.2 percent in June from a year earlier, worse than the 0.1 percent decline in May.
However, German inflation held steady in July at 2.0 percent against expectations for a decline to 1.9 percent.