US economy grew at revised 2.5 per cent annual rate in April-June quarter, double first quarter

WASHINGTON – The U.S. economy grew at a 2.5 per cent annual rate from April through June, much faster than previously estimated. The steep revision was largely because U.S. companies exported more goods and imports declined.

The Commerce Department said second-quarter growth was sharply higher than the initial 1.7 per cent rate it reported last month. And the growth this spring was more than double the 1.1 per cent rate from January through March.

The improvement in the trade deficit helped offset a weaker government spending.

Economists expect growth will stay at the 2.5 per cent rate in the second half of the year, helped by steady job gains and less drag from federal spending cuts. But some worry that increases in interest rates could slow the economy’s momentum.