The U.S. economy expanded more than previously estimated in the second quarter, boosted by consumer spending and exports.
Gross domestic product climbed at a 1.7 percent annual rate from April through June, up from an initial estimate of 1.5 percent and following a 2 percent gain in the first three months of the year, revised Commerce Department figures showed today in Washington. The weakest gain in business investment in new equipment in almost three years restrained the pace of growth, which was the slowest since the third quarter.
Consumers and companies may continue to curb spending in the second half of the year as rising fuel costs, unemployment and the prospect of tax changes and government budget cuts hurt confidence. Chairman Ben S. Bernanke this week may reaffirm the view of many Federal Reserve policy makers that more stimulus will be needed unless the expansion shows signs of strengthening.
Read more at Bloomberg.