The US economy grew faster than predicted in the second quarter.
Gross domestic product — the total value of goods produced and services provided in a country during one year — rose at a 2.5% annualized rate, up from an initial estimate of 1.7%, according to the US Commerce Department. According to Bloomberg, the median forecast of 79 economists surveyed projected a 2.2% gain.
The economic outlook continues to be a mostly positive one, albeit not entirely. Americans filing applications for unemployment benefits dropped last week, while consumer confidence fell to the lowest level in more than four months as Americans’ views on the economy, finances and spending soured.
Corporate spending increased to a 9.9% annualized rate, exceeding the 9% gain previously reported. Consumer spending climbed 1.8% on gains in durable goods such as automobiles and appliances. That followed a 2.3% increase from January through March. It’s also a boom period for financial institutions as U.S. banks reported record net income of $42.2 billion for the second quarter. These earnings marked a second consecutive record quarter, according to the FDIC.
Finally, corporate profits rose at a 3.9% rate, the biggest gain since the fourth quarter of 2011. This is a gain of 5% when compared to the same period last year.