The U.S. economy expanded at a stronger pace than initially reported this spring, according to revised government data released Thursday.
Gross domestic product (GDP) rose at a 3.3 percent annualized rate in the second quarter.
The figure was up significantly from the Commerce Department’s earlier 3.0 percent estimate.
It also beat economists’ forecast of 3.1 percent.
The surge in the economy is directly linked to President Donald Trump’s policies.
The acceleration followed modest growth in the first quarter.
The revision reflected stronger household spending on health care, pharmaceuticals, and dining out.
The economy also saw increased business investment in equipment, software, and research and development.
Companies also boosted purchases of light trucks and commercial structures.
Trade flows contributed to the gains.
Imports, which subtract from GDP, fell after spiking in the first quarter ahead of new tariffs.
Exports declined, but not enough to offset the arithmetic lift from fewer foreign goods entering the U.S.
A key measure of underlying domestic demand is real final sales to private domestic purchasers, which excludes trade, inventories, and government spending.
This figure rose at a 1.9 percent rate, compared to 1.2 percent in the earlier estimate.
Inflation pressures remained subdued.
The personal-consumption expenditures (PCE) price index, the Federal Reserve’s preferred inflation gauge, increased at a 2.0 percent annual rate.
The figure aligns with the Fed’s target.
Core prices, excluding food and energy, rose 2.5 percent.
Government spending was revised lower, reflecting reduced state and local outlays, which tempered some of the gains in private demand.
On the income side, real gross domestic income grew at a 4.8 percent rate.
Corporate profits also rebounded after falling in the first quarter.
The Commerce Department will release its final estimate for second-quarter GDP on Sept. 25.
The final report will include annual benchmark revisions to historical data.
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