Finance: GDP revised up more than expected on stronger business and consumer spending

Meanwhile, economists are estimating the impact of Hurricane Harvey on third-quarter growth.

US economic growth in the second quarter was stronger than previously reported, as businesses and consumers spent more.

The Commerce Department's second estimate of gross domestic product released Wednesday printed at 3%. Economists had forecast a slight increase to 2.7% from 2.6% on the back of stronger consumer spending.

President Donald Trump had set a 3% target for long-term economic growth.

Personal consumption, the biggest part of the economy, was revised up to 3.3% in the second estimate.

A third estimate based on more complete data will be released on September 28.

Amid the tragedy of Hurricane Harvey, economists are estimating how it could impact third-quarter growth.

"Our point estimate remains for a small drag on growth in Q3: measured Q3 real GDP growth will be only slightly (~0.1ppt QoQ SAAR) lower due to Harvey," said Citi's Andrew Hollenhorst in a note Tuesday.

"The output reduction could be greater if the disruption is longer lasting or if there are larger knock-on effects outside the region. For instance, stoppages at oil refineries could curtail activity further down the supply line."

More to come ...

Meanwhile, economists are estimating the impact of Hurricane Harvey on third-quarter growth. Read Full Story