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WASHINGTON —The U.S. economy expanded more than initially estimated in the second quarter this year, the Department of Commerce said Thursday, on stronger consumer spending than originally anticipated.
The world's biggest economy grew at an annual rate of 3.0% in the April-to-June period, up from 2.8% according to an earlier estimate.
Analysts had expected no revision to the figure.
"The update primarily reflected an upward revision to consumer spending," the Commerce Department said.
Unexpectedly robust consumption - even in the face of high interest rates - has helped to bolster the U.S. economy in recent times. But with households depleting pandemic-era savings, the anticipation was for consumption to pull back.
In the latest revision, the higher spending was partly offset by downward revisions in areas such as business investment, exports and government spending.
Imports, however, were revised higher.
The 3.0% figure for the second quarter this year was an uptick from 1.4% growth in the first quarter.
The Federal Reserve rapidly increased interest rates to tackle surging inflation in 2022. It is widely expected to make its first post-pandemic rate cut in September. This could provide a boost to the economy.