US GDP Growth Unexpectedly Upwardly Revised To 3.1% In Q2

US Q2 GDP revised up to 3.1% from 3.0%

US Q2 GDP revised up to 3.1% from 3.0%

The US economy grew a little more than initially estimated in the second quarter, according to data released by the Commerce Department on Thursday.

Additional weakness was anticipated for September after Hurricane Irma made landfall in Florida.

The Bureau of Economic Analysis' previous estimate issued last month was 3%, following an initial estimate in July of 2.6%.

The 3.1% growth rate is ahead of President Donald Trump's stated 3% target for the economy.

Economists are looking ahead to the first estimate of third-quarter GDP, to be released on October 27, for any impact of the Hurricanes that recently slammed the south-east coast of the U.S. mainland.

"Growth was solid in the second quarter, but that was after a soft first quarter", said Gus Faucher, chief economist at the PNC Financial Services Group.

While the Trump administration has vowed to accelerate annual US economic growth to over 3 percent, many economists expect the USA economy to continue growing at around 2 percent this year.

However, few details were given with the plan about how the cuts in taxes would be paid for without an increase of the budget deficit and the country's national debt. Purchaser spending in the second quarter was the quickest in a year.

Nonresidential fixed investment, a measure of corporate spending on structures and equipment, climbed at a pace of 6.7 percent in the second quarter, slightly lower than 6.9 percent previously reported. It was the fastest rate since the first quarter of 2015.

The stronger than previously estimated GDP growth primarily reflected an upward revision to private inventory investment.

Lodging was a marginally greater delay development in the last quarter than beforehand revealed, subtracting 0.3 rate point from yield.

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