U.S. GDP Growth Upwardly Revised By More Than Expected In Q2

Primarily reflecting upward revisions to non-residential fixed investment, private inventory investment, and exports, the Commerce Department released a report on Thursday showing that U.S. gross domestic product increased by more than previously estimated in the second quarter.

The report said second quarter GDP climbed by 1.4 percent compared to the previously reported 1.1 percent increase. Economists had expected the pace of GDP growth to be upwardly revised to 1.3 percent.

The upwardly revised GDP growth seen in the second quarter compares to the 0.8 percent increase that was reported for the first quarter.

The Commerce Department said the most notable change in the latest GDP estimate is that non-residential fixed investment increased compared to the previously reported decrease.

However, the report also said gross domestic income decreased by a revised 0.2 percent in the second quarter, reflecting the weakest reading since a matching drop in the first quarter of 2013.

The faster GDP growth compared to the previous quarter primarily reflected an acceleration in consumer spending and upturns in non-residential fixed investment and exports.

A larger decrease in private inventory investment, downturns in state and local government spending and residential fixed investment and an upturn in imports still limited the upside.

On the inflation front, the Commerce Department said its reading on core consumer prices, which exclude food and energy prices, climbed by an unrevised 1.8 percent in the second quarter.