GDP Growth Revised Upward

The U.S. economy was stronger than initially reported during the second quarter, as the Commerce Department revised gross domestic product growth upward to 2.9%.

The advance reading last month had shown the economy growing at a 2.5% annual pace. Economists had anticipated a revision to 3%.

Core inflation increased 2.8% during the second quarter, down slightly from 2.9% in the advance report. Still, the year-over-year change remained constant at 2.3%, a figure a bit outside the Federal Reserve's comfort zone.

Final sales were revised higher to 2.3% from 2.1%, while the chain deflator remained unchanged at a 3.3% clip.

Spending on durable goods reversed a previously reported 0.5% decline and was revised to a 0.5% advance. Though personal spending picked up, the surprises came from residential investing, down 9.8%, and equipment and software investing, lower by 1.6%.