US commercial paper market shrinks a 2nd week -Fed

NEW YORK, Sept 2 (Reuters) - The U.S. commercial paper market contracted sharply for a second straight week as the slowing economy cooled demand for business credit, Federal Reserve data showed on Thursday.

For the week ended Sept. 1, the size of the U.S. commercial paper market, a vital source of short-term funding for companies' day-to-day operations, fell by $22.9 billion to $1.064 trillion outstanding from $1.087 trillion the previous week. (Reporting by John Parry and Caryn Trokie; Editing by James Dalgleish)