Business

US Q2 GDP growth revised up to 3.1%

WASHINGTON The United States economy grew a bit faster than estimated in the second quarter, recording its quickest pace in more than two years.

But the momentum probably slowed in the third quarter as Hurricanes Harvey and Irma temporarily curbed activity.

Gross domestic product (GDP) increased at a 3.1 per cent annual rate in the April-June period, the Commerce Department said in its third estimate yesterday.

The upward revision from the 3 per cent pace of growth reported last month reflected an increase in inventory investment.

Growth last quarter was the fastest since the first quarter of 2015 and followed a 1.2 per cent pace of growth in the January-March period.

Economists had expected that second-quarter GDP growth would be unrevised at a 3 per cent rate.

Harvey, which struck Texas, has been blamed for much of the decline in retail sales, industrial production and home sales last month.

Further weakness is expectedafter Irma slammed into Florida early this month.

Rebuilding is expected to boost growth in the fourth quarter, but economists believe the growth figure will not breach President Donald Trump's 3 per cent target.

- REUTERS

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