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US GDP growth now even higher after trade gap narrows

Shipping container trucks at the port in Long Beach, Calif.
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Strong second-quarter GDP growth just got stronger and prospects for the third quarter also improved, after the Commerce Department reported the trade gap narrowed 7 percent in June on falling oil imports.

According to a CNBC/Moody's Analytics rapid update, economists upped their forecasts to a median of 4.2 percent for second-quarter growth, from the reported 4 percent level. They also raised their forecasts for the third quarter up by 0.1 percent to 3.1 percent.

"It's good news," said Chris Rupkey, chief financial economist at Bank of Tokyo-Mitsubishi. "Much of the growth—1.7 percent of the 4.0—was pure inventory building. That's temporary."