U.S. Economy Expanded 4.2% in Second Quarter

Real gross domestic product in the U.S. grew at an annualized 4.2% in the second quarter, up from a preliminary estimate of 4.1%, according to the U.S. Bureau of Economic Analysis. It was the strongest quarterly spurt in nearly four years.

The bureau attributes the additional 0.1-point gain to upward adjustments in government spending and nonresidential fixed investment, and a downward adjustment for imports.

In current-dollar terms, GDP in the second quarter grew at an annualized 7.6%.

Separately, the bureau says its estimate of growth in real gross domestic income for April-June is unchanged at 1.8%. That annualized pace compares with 3.9% in January-March.

The bureau also left unchanged its estimate that the gross domestic purchases price index rose 2.3% in the second quarter compared with 2.5% in the first three months of 2018. When volatile food and energy prices are ignored, core personal consumption expenditures grew 2.0% in the second quarter compared with 2.2% in the first quarter.