Gross domestic product grew at a revised 4.6 percent annualized rate, up from a previous estimate of 4.2 percent, Commerce Department data showed today in Washington. The increase matched the median forecast of 81 economists surveyed by Bloomberg and followed a 2.1 percent decline in the first three months of the year.
Busier assembly lines at the nation's factories and job growth that's kept Americans spending indicate companies are a bit more upbeat about the prospects for demand. As the world's largest economy and labor market improve, Federal Reserve policy makers are debating how much longer to keep interest rates near zero.
"We definitely see momentum," in the U.S. economy, said Brittany Baumann, an economist at Credit Agricole CIB in New York, which correctly forecast GDP. "Consumer spending should benefit from strengthening labor conditions and improved financial conditions," while business investment should also continue, she said.
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