The U.S. economy grew at its fastest pace in 2-1/2 years in the second quarter and activity was broad-based, in a bullish signal for the remainder of the year.
The Commerce Department on Friday raised its estimate of gross domestic product (GDP) to show the economy expanded at a 4.6 percent annual rate. The best performance since the fourth quarter of 2011 reflected a faster pace of business spending and sturdier export growth than previously estimated.
The stronger growth profile provides a firmer base for the third quarter. So far, economic data such as manufacturing, trade and housing suggest that much of the second-quarter momentum spilled over into the third quarter. Growth estimates for the July-September quarter range as high as a 3.6 percent pace.
GDP was previously estimated to have advanced at a 4.2 percent rate in the second quarter. The revision was in line with Wall Street's expectations. The economy contracted at a 2.1 percent pace in the first quarter.
There were upward revisions to all categories, with the exception of consumer spending, where stronger healthcare outlays were offset by weaknesses in recreation and durable goods spending.