The American economy grew at a slightly faster pace in the second quarter than had been previously estimated propelled by consumer spending and reviving business investment.
U.S. GDP expanded at a 3.1 percent annualized pace in the third and final revision to the Commerce Department's statistics issued Thursday. This was up from the 3.0 percent pace of the prior estimate. It was the fastest rate since the beginning of 2015 and followed the first quarter's 1.4 percent expansion and 3.5 percent in the last three months of 2016.
Consumer spending, the largest component at about 70 percent, expanded at an unrevised 3.3 percent rate and was supported by rising business investment. Non-defense capital goods excluding aircraft, an oft-used proxy for buisness spending, also reported Thursdayas part of the durable good release, jumped 0.9 percent in August, triple the median projection and was 3.3 percent higher on the year.
The Atlanta Federal Reserve's GDPNow model puts economic growth in the third quarter, which ends Saturday, at 2.1 percent. If those figures are borne out it would place expansion at 2.2 percent for the first nine months of the year, on par with the average pace over the last eight years.
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