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U.S. second quarter GDP revised up to 3.7% from 2.3%

Published 27/08/2015, 13:32
© Reuters.  U.S. economy grows 3.7% in second quarter
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Investing.com - The U.S. economy grew more than initially estimated in the second quarter, boosting optimism over the health of the economy and supporting the case for a U.S. interest rate hike this year, official revised data showed on Thursday.

In a report, the Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 3.7% in the three months ended June 30, above expectations for growth of 3.2%.

Preliminary data initially pegged U.S. growth at 2.3% in the second quarter. The U.S. economy expanded 0.6% in the preceding quarter.

The data showed personal consumption rose 3.1% in the second quarter, meeting expectations and up from an initial estimate of 2.9%. Consumer spending typically accounts for nearly 70% of U.S. economic growth.

The GDP price index rose 2.1% in the second quarter, above forecasts for 2.0% and compared to a preliminary reading of 2.0%.

EUR/USD was trading at 1.1252 from around 1.1286 ahead of the release of the data, GBP/USD was at 1.5431 from 1.5443 earlier, while USD/JPY was at 120.46 from 120.20 earlier.

The US dollar index, which tracks the greenback against a basket of six major rivals, was at 95.68, compared to 95.47 ahead of the report.

Meanwhile, U.S. stock futures pointed to a higher open. The Dow futures pointed to a gain of 1%, the S&P 500 futures rose 0.95%, while the Nasdaq 100 futures jumped 1.1%.

Elsewhere, in the commodities market, gold futures traded at $1,121.00 a troy ounce, compared to $1,122.50 ahead of the data, while crude oil traded at $40.05 a barrel from $40.14 earlier.

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