The nation's economic growth in the second quarter was better than first estimated, helped by an improvement in the trade deficit and inventory buildup.
The Commerce Department said Wednesday the economy expanded at a 2.9 percent annual clip in the quarter, compared with the first estimate of 2.5 percent, and just below the 3.0 percent economists has predicted.
Commerce said quarterly corporate profits rose for the third consecutive quarter, resulting in year-over-year growth of 20.5 percent. The growth rate reflected a 27.8 percent rise in profits of financial corporations and a 15.6 percent increase in profits of nonfinancial corporations.
Businesses increased inventories by $58.7 billion, versus the $52.6 billion originally estimated and the $41.2 billion reported in the first quarter.
The price index for gross domestic purchases, which measures prices paid by U.S. residents,
increased 4.0 percent in the second quarter, the same as in the advance estimate; the index increased 2.7 percent in the first quarter. Excluding food and energy prices, the price index for gross domestic purchases increased 2.9 percent in the second quarter, compared with an increase of 3.0 percent in the first.
Gross domestic product measures the value of all goods and services produced within the United States and is considered the best barometer of the country's economic standing.