Boosted By Resurgent Consumer Spending, Second Quarter Growth Revised Up To 3%

The U.S. economy grew at a faster pace than previously thought this spring, boosted by a surge in consumer spending.

The Commerce Department said on Thursday that the U.S. economy grew at a three percent annual pace in the second quarter, an upward revision from the first estimate of 2.8 percent.

Economists had forecast the second estimate to be unchanged from the first estimate.

The economy grew at a slower 1.4 percent rate in the first quarter.

Personal consumption expenditures were revised up from a 2.4 percent growth rate to 2.9 percent, indicating that the U.S. consumer was more resilient than many believed.

Private nonresidential fixed investment, a proxy for business investment in the economy, was revised lower, down to a 4.6 percent annual rate of growth from the prior estimate of 5.2 percent. Investment in intellectual property grew at a 2.6 percent annual rate, much slower than the 4.5 percent reported in the first estimate. Investment in equipment was revised down from a growth rate of 11.6 percent to 10.8 percent.