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U.S. Economy Grows Faster Than Forecast on Consumer Spending

Bloomberg (09/25/15) Shobhana Chandra

The U.S. economy grew at an annual 3.9% pace in the second quarter instead of 3.7%, revised government data show. The median forecast of 76 economists surveyed by Bloomberg called for a 3.7% gain. Higher consumer spending and somewhat stronger business investment mostly accounted for the upward revision, reports the U.S. Department of Commerce. Consumer spending, the main engine of U.S. growth, rose 3.6% versus an earlier 3.1% estimate. Business investment in structures was revised up to 6.2% from a 3.1% increase. Home construction climbed at a 9.3% rate instead of 7.8%. The value of inventories increased by $113.5 billion, down from a prior $121.1 billion estimate.