WASHINGTON — The economy's spring rebound turned out to be slightly less energetic than the government previously thought. And, the road ahead is likely to be rocky as the country gets pounded by the worst financial crisis in decades.

The Commerce Department reported Friday that gross domestic product, or GDP, increased at a 2.8 percent annual rate in the April-June period. That wasn't as strong as the 3.3 percent growth estimate made a month ago.

But it did mark a pickup after two terrible quarters. The economy barely grew in the first quarter — advancing at a feeble 0.9 percent pace. And, in the final quarter of last year, the economy actually shrank.

Nonetheless, the lower reading for second-quarter GDP surprised economists who had been expecting the government to stick with the 3.3 percent growth estimate.

The main reasons behind the downgrade: consumer spending and U.S. exports didn't grow as much during the spring as previously thought. Yet export growth was still very brisk, a key factor keeping the economy afloat. And, consumers were helped out by the government's tax rebates.

GDP measures the value of all goods and services produced within the U.S. and is the best barometer of the country's economic health.

Since the spring, the economy has lost traction.

In the past week alone, the clogging of the nation's credit arteries had become so bad that the Bush administration proposed a $700 billion financial bailout to Congress in a desperate bid to stem the fallout.

Despite marathon negotiations between congressional leaders and the administration to hash out a deal, the package is in limbo. Angry Republicans are balking even as President Bush made a fresh appeal on Friday to move swiftly. "There is no disagreement that something substantial must be done."

On Wall Street, the Dow Jones industrials slid in morning trading as investors fretted over the bailout logjam and the collapse of Washington Mutual, the country's largest thrift. Federal regulators seized the institution and struck a deal to sell much of its operations to JPMorgan Chase & Co.

GOP presidential nominee Sen. John McCain and his Democratic rival, Sen. Barack Obama, were summoned to the White House and have scrambled to assure the public they are on top of the nation's economic and financial problems.

Federal Reserve Chairman Ben Bernanke earlier this week told Congress that failing to enact the bailout could drive unemployment and foreclosures even higher and push the economy into a recession.