GDP grew at a 4.2% pace in Q2.
Economists were expecting the growth rate to be revised down to 3.9%.
Personal consumption growth was unchanged at 2.5%. Economists were expecting it to be cut to 2.4%.
The change in private inventories added 1.39 percentage points to growth. Economists often flag this as it represents a drag on future growth.
Real final sales — that is, GDP minus the change in private inventories — increased 2.8% in Q2.
Nonresidential fixed investment, a proxy for business spending, jumped 8.4% during the quarter. This was revised up from an earlier estimate of 5.5% growth.
The U.S. economy slowed sharply in Q1 as the unusually harsh winter effectively froze growth.
Q2 has been characterised as the economic snapback.
“The stronger pace of economic activity will go a long way in the promotion of job creation, which will in turn foster even greater economic activity,” write Bloomberg economists Richard Yamarone and Josh Wright.
Here’s a breakdown of the components of GDP:
Here’s how much the various components of GDP added to growth.
NOW WATCH: Money & Markets videos
Business Insider Emails & Alerts
Site highlights each day to your inbox.