The United States economy expanded at an unrevised 1.5 per cent pace in the second quarter, though underlying details showed stronger consumer spending and business investment than initially reported.
The annualized gain in inflation-adjusted gross domestic product compares with a 2.1 per cent advance in the first quarter, according to the second estimate issued Wednesday by the Bureau of Economic Analysis.
Consumer spending , which comprises more than two-thirds of economic activity, increased an annualized 3.4 per cent, stronger than the initially estimated 3.2 per cent gain. Nonresidential fixed investment climbed at an 8.5 per cent pace.
A narrower gauge of underlying demand, final sales to private domestic purchasers, rose a revised 4.2 per cent in the second quarter — the strongest in more than three years and compared with an initial estimate of 3.9 per cent. The measure excludes net exports, inventories and government spending.
Government spending declined an annualized one per cent in the second quarter, reflecting a steep drop in nondefence-related outlays.
Meanwhile, the personal consumption expenditures price index minus food and energy was revised up to an annualized 3.6 per cent rate from 3.4 per cent. Separate data out Wednesday showed a 0.2 per cent increase in the so-called core PCE price gauge in July from the prior month.
That report also showed no change in real consumer spending during the month after more robust increases in the prior two months.