US quarterly economic growth revised higher

Customers shop at a Home Depot store on July 26, 2017 in Chicago, Illinois.Image copyright
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Consumer spending on items such as housing was higher than previously reported

completely new figures show the US economy expanded by 3% inside the three months to the end of June, growing at its fastest pace in more than two years.

Consumer in addition to business spending was higher than previously estimated, the US Bureau of Economic Analysis said.

The revision lifted the annual GDP growth rate coming from the earlier 2.6% estimate, with growth accelerating coming from a slow start to the year.

however economists said the idea did not alter the picture significantly.

On a year-on-year basis, GDP increased by 2.2% inside the second quarter – similar to the “stolid” growth which has characterised the US economy in recent years, said Gus Faucher, chief economist for PNC Bank, based in Pittsburgh.

“The economy today with This specific number looks a lot like the economy yesterday,” he told the BBC.

The 3% growth rate inside the second quarter marked a rebound coming from 1.2% growth inside the first three months of the year.

Economic momentum

The Bureau of Economic Analysis (BEA) said consumers spent more than previously estimated on items such as housing in addition to utilities, while businesses invested in categories such as equipment in addition to intellectual property.

The improvement could help make the case for the Federal Reserve to move forward with plans to raise interest rates in addition to wind down the portfolio of securities in addition to additional assets the idea acquired as part of a prior stimulus programme.

Analysts currently expect an announcement about the balance sheet in September in addition to a rate hike in December.

US President Donald Trump has said he wants to see the US economy increase by 3% for 2017.

Wednesday’s revision shows which US economy has momentum going into the second half of the year, however Mr Faucher said he did not expect which rate to be sustained over the full year.

GDP increased by about 1.5% in 2016 inside the US in addition to by 2.9% in 2015, according to the BEA.

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