The US economy expanded more than initially estimated in the second quarter this year, the Department of Commerce said Thursday, on stronger consumer spending than originally anticipated.
The world’s biggest economy grew at an annual rate of 3.0 percent in the April to June period, up from 2.8 percent according to an earlier estimate.
Analysts had expected no revision to the figure.
“The update primarily reflected an upward revision to consumer spending,” said the Commerce Department.
Unexpectedly robust consumption — even in the face of high interest rates — has helped to bolster the US economy in recent times.
But with households depleting pandemic-era savings, the anticipation was for consumption to pull back.
In the latest revision, the higher spending was was partly offset by downward revisions in other areas like business investment, exports and government spending.
Imports, however, were revised higher.
The 3.0 percent number for the second quarter this year was an uptick from 1.4 percent growth in the first quarter.
Although the Federal Reserve has rapidly hiked interest rates to tackle surging inflation in 2022, it is widely expected to make its first post-pandemic rate cut in September. This could provide a boost to the economy.