Second-quarter gross domestic product growth was revised up to a 3.3% gain, signaling that the U.S. economy is stronger than had first been thought.
Last month, the Department of Commerce had initially estimated that the GDP had risen 1.9% in the quarter.
Economists surveyed by MarketWatch and Reuters had been expecting an increase of 2.7%.
That compares with a weak 0.9% growth rate between January and March and a -0.2% contraction during the fourth quarter of 2007.
The upward revision to GDP growth was largely due to increased exports and the fact that businesses had larger product inventories, which suggested higher production rates.
Exports of goods and services increased 13.2% in the second quarter, compared with a 5.1% increase in the first quarter.
Consumer spending, which makes up two-thirds of the GDP, increased 1.7% during the quarter, up from a previously estimated 1.5% increase.
Inflation across the economy increased 4.2% during the quarter.
“Net exports are keeping some industries strong, compared to what may have been expected, and are supporting domestic employment,” said Andy Bischel, chief investment officer of SKBA Capital Management LLC of San Francisco.
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