US second-quarter GDP revised higher in

US
President Donald Trump takes part in a
groundbreaking.
Kevin
Lamarque/Reuters

• The US economy grew even faster than previously
  reported in the second quarter, according to a Commerce
  Department report released on Wednesday. 
• Gross Domestic Product, the value of every good and
  service produced domestically, rose at an annual rate of 4.2%,
  revised up from 4.1% in the advance
  estimate.  
• The upward revision showed that business investments
  were stronger than had been estimated.

The US economy in the second quarter grew even faster than had
been estimated, according to a report from the Commerce
Department on Wednesday. 

Gross
Domestic Product (GDP), the value of every good and
service produced domestically, rose at an annual rate of 4.2%.
The advance estimate released in July had penciled in
second-quarter growth at 4.1%, which was the fastest rate in four
years. 

Wednesday’s upward revision, based on more complete data, showed
that business investment and inventories contributed more to
growth than previously thought. 

The April-June period was the first full quarter with the
tax cuts signed by President Donald Trump in effect. Consumer
spending rebounded from the first quarter and, as usual, was the
biggest contributor to growth, the advance estimate
showed. Business investment and government spending also
increased in the first estimate. 

Expectations for growth in the current quarter vary widely. The
Atlanta Federal Reserve’s GDPNow forecasting model estimates that
the economy will grow 4.6% in the third quarter. But the New York
Fed’s Nowcast model has growth at just 1.96%. 

Many economists are doubtful that the economy can sustain a 4%
growth rate, partly because of a yearslong slowdown in
productivity.

This story is developing, refresh for updates.

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