Services sector, meanwhile, grew at a slow and stable rate of 0.2 percent on comparatively widespread gains, stated TD Economics. "It just came out".
"While we expect that slowdown to worsen over the second half of this year and into next year, the risks around our annual 2017 GDP growth forecast of 2.4% now lie firmly to the upside".
If the economy were to sustain the current pace of expansion, it would be a significant uptick from the 2 percent annual growth rate that has mostly prevailed since the recovery began.
For his part, Donald Trump has welcomed this growth of the GDP considering that the administration was on the way to his goal of a 3% growth this year.
Many economists had been forecasting growth in the current July-September quarter would be around 3 percent.
US economic growth was stronger than initially thought during the second quarter, a sign of momentum headed into the second half of 2017.
The department said increased consumer spending was the main reason for the growth. But earnings began to recover previous year as crude prices stabilized, and exporters are getting a boost because the dollar has weakened since early 2017. The nonpartisan Congressional Budget Office sees growth averaging 1.9 percent over the next decade, a forecast much closer to estimates made by private economists.
Berkeley Police Allowed Antifa to Jump Barricade, Assault Demonstrators
The violence in Berkeley on Sunday stood in stark contrast to the peaceful counter demonstrations in San Francisco on Saturday. San Francisco police announced Saturday afternoon that they had seen no major incidents and made only one arrest .
Combined with the 3.7% expansion over the first three months of 2017, Statistics Canada said the country saw its strongest six-month start to a calendar year in 15 years.
Earlier this month, Container Store Group's CFO Jodi Taylor said that the company "has seen solid growth in the higher-ticker portion" and holds "the opinion that the customer is still spending". "We're of the opinion that the customer is still spending, " Ms. Taylor told analysts earlier this month.
The report also showed strength in business investment.
Business spending got a boost from software, helping intellectual-property investment rise at a 4.9 percent pace, up from an initially reported 1.4 percent. Said Morgan Stanley economists Robert Rosener, Michael Dilmanian and Ellen Zenter via research notes. "First, domestic oil and gas production rebounded after sliding for most of 2015 and 2016. I believe this reflects heightened optimism regarding the economic outlook, both because the underlying economy is solid and because decision makers anticipate a more favorable policy backdrop".
Spending by governments, which had grown 0.7 percent in the initial estimate, was revised to a decline at a 0.3 percent rate.
"Overall the US economy and labor market remain in good shape, and will easily withstand any temporary drag from Harvey", Gus Faucher, chief economist at PNC Financial, wrote in a report on Wednesday.