The US economy grew faster than initial estimates in Q2 2017, marking its fastest pace over 2 years. The inertia, however, probably slowed in the third quarter after hurricanes Harvey and Irma temporarily hit the activity. The gross domestic product (GDP) has risen at an annual rate of 3.1% between April and June, the commerce ministry said in its third assessment released today. The upward adjustment by 0.1 percentage point against the last assessments.
The growth in the past quarter was the fastest since the first quarter of 2015 and accelerated sharply against the 1.2% growth rate in the January-March period. Economists expected GDP growth for the second quarter to remain unadjusted at 3.0%.
Thanks to a faster GDP growth in the second quarter, the economy grew by 2.1% in the first half of 2017. However, economists do not believe that this year’s growth will reach President Donald Trump’s ambitious target of 3.0%.
The consumer spending growth, which accounts for more than two-thirds of the US economy, remained unchanged at 3.3% in the second quarter, after the rise in service costs was offset by a downward correction for durable goods.