Economic activity in the U.S. grew by slightly more than initially estimated in the second quarter, according to a report released by the Commerce Department on Wednesday.
The report said real gross domestic product climbed by 4.2 percent in the second quarter compared to the previously reported 4.1 increase. The pace of growth had been expected to be downwardly revised to 4.0 percent.
With the unexpected upward revision, the GDP growth in the second quarter reflects a significant acceleration from the 2.2 percent advance in the first quarter.
The upward revised increase in GDP in the second quarter also represents the fastest growth since a 4.9 percent spike in the third quarter of 2014.
The Commerce Department said the stronger than previously estimated growth primarily reflected upward revisions to non-residential fixed investment and private inventory investment
On the other hand, the report showed a downward revision to the increase in consumer spending, which climbed by 3.8 percent compared to the previously reported 4.0 percent jump.
The consumer spending growth in the second quarter still reflected a substantial acceleration from the 0.5 percent uptick seen in the first quarter.
The faster GDP growth in the second quarter also reflected accelerations in exports and government spending as well as a smaller decrease in residential fixed investment.
A downturn in private inventory investment and a deceleration in non-residential fixed investment limited the upside.
On the inflation front, the Commerce Department said its reading on core consumer prices, which exclude food and energy prices, showed the annual rate of price growth slowed to 2.0 percent in the second quarter from 2.2 percent in the first quarter.