US growth higher than expected

31 Aug 17

The US’s real gross domestic product has increased at a higher rate than expected despite falls in state and local government expenditure, its Commerce Department has said.

Growth increased at an annual rate of 3.0% in the second quarter of 2017, which was 0.4 percentage points more than first thought.

The department said its new estimate was based on more complete source data than were available when it made its initial 2.6% estimate in July.

Growth reached only 1.2% in the first quarter of this year.

The department said: “The general picture of economic growth remains the same; increases in personal consumption expenditures and in non-residential fixed investment were larger than previously estimated.

“These increases were partly offset by a larger decrease in state and local government spending.”

Federal government spending, though, increased.

Expressed in dollars, America’s GDP increased in the second quarter by 4.0%, equivalent to $189.0bn, to reach $19,246.7bn. 

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