The U.S. economy expanded at a 2.1% annual pace from April through June the government said Wednesday in a downward revision from its initial estimate.

The government had previously estimated that the economy expanded at a 2.4% annual rate last quarter.

The Commerce Department’s second estimate of growth last quarter marked a slight acceleration from a 2% annual growth rate from January through March.

Though the economy has been slowed by the Federal Reserve’s strenuous drive to tame inflation with interest rate hikes, it has managed to keep expanding, with employers still hiring and consumers still spending.

Consumer spending, which accounts for about 70% of the U.S. economy, rose at a 1.7% annual pace in the April-June quarter — a decent gain, though down from 4.2% in the first three months of 2023.

The Biden administration is proposing a new rule that would make 3.6 million more U.S. workers eligible for overtime pay, reviving an Obama-era policy effort that was ultimately scuttled in court.

The new rule would require employers to pay overtime to so-called white collar workers who make less than $55,000 a year, up from the current threshold of $35,568, which was set by the Trump administration in 2019.

In another significant change, the rule proposes automatic increases to the salary level every three years.

The new rule, which is subject to a publicly commentary period and wouldn’t take effect for months, would have the biggest impact on retail, food, hospitality, manufacturing and other industries where many managerial employees meet the new threshold.