U.S. growth upgraded to 3 percent in second quarter

The US economy grew at its fastest pace in more than two years in the second quarter much faster than initially estimated official data

The US economy grew at its fastest pace in more than two years in the second quarter much faster than initially estimated official data

The second estimate of the second quarter growth report implies that the US economy is on a stronger footing than was expected earlier with revised up more than expected.

The gross domestic product, the broadest measure of economic health, grew at an annual rate of 3 per cent in the April-June quarter, the Commerce Department reported Wednesday.

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

"The consumer is in the driver's seat in terms of economic growth", said Scott Anderson, chief economist at Bank of the West in San Francisco. This compares with a 1.2% gain in the first quarter of the year. This was also an improvement from the 1.2 percent growth rate seen in the first quarter.

Read the GDP release.

During the 2016 election, then-presidential candidate Trump pledged to bring manufacturing sector jobs back to the United States and focus on improving the country's economy.

Touting the second-quarter growth pace, Trump said on Wednesday he was ready to work with Congress on tax reform.

"The revised GDP growth rate likely comes as a sigh of relief for folks looking for further confirmation that the US economy is moving along swiftly", says Mike Loewengart, investment strategist at Etrade.

Tearful Houston police chief confirms officer's death in Harvey flooding
During the conference, Acevedo emotionally reflected on Perez, stating, "Steve is one of the sweetest persons I've ever met". The officer's death is the 15th fatality in Texas claimed by Hurricane Harvey or the rains it spawned after making landfall.

With more data available, the increase in second-quarter GDP reflected bigger contributions from personal spending, investment, exports, federal expenditure and private inventory investment, according to the BEA data.

Hurricane Harvey's pummeling of major population and production centers in Texas and Louisiana will likely constrain growth in the third quarter.

The Trump administration is targeting tax cuts, deregulation and infrastructure spending to boost growth. Volatility has returned, geopolitical tension is rising, and the devastation of Harvey has many observers questioning what's in store for the future, particularly as the USA dollar declines.

Corporate profits (after IVA and CCA) increased by $26.8bn (1.3%) in the second quarter after a decrease of $46.2bn (2.1%) in the first quarter.

The figure was revised up by an unusually-large four tenths from the growth estimate published last month, due to higher consumer spending and business investment than in the initial report.

Investment on nonresidential structures increased at a 6.2 percent pace, rather than the previously reported 4.9 percent rate.

Despite the acceleration in consumer spending, inflation remained benign in the second quarter.

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