GDP Grew At A Faster Than Expected 3.8% This Spring

The U.S. economy grew at a faster pace in the second quarter than was earlier estimated, the U.S. government said Thursday.

Gross domestic product—the government’s broad measure of economic output—grew at a 3.8 percent annual rate from April through June in Commerce’s third estimate. That compares with the prior reading of 3.3 percent. Adjusted only for seasonality, not inflation, the economy increased at a six percent pace.

Economists had expected no change from the earlier estimate. Instead, updated data showed firmer household demand. Consumer spending rose at a 2.5 percent rate, up from the previously reported 1.6 percent. Final sales to private domestic purchasers—a key gauge of underlying demand—advanced 2.9 percent, sharply higher than the earlier 1.9 percent reading.

The rebound