United States economic growth hits 3% rate in second quarter

Canada's consumers benefiting from a buoyant jobs market and rising home values are responsible for the surge

The saving rate also slipped to 3.7% from 3.9% in the first quarter.

The "second" estimate released by the Bureau of Economic Analysis (BEA) reflects an upward revision from the initial estimate of 2.8%.

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.

According to economists surveyed by Reuters, second quarter growth was projected to increase at 2.7 percent. He predicted GDP would grow close to 3 per cent this quarter. Corporate profits rose 1.3 percent in the second quarter following a drop of 2.1 percent in the first quarter.

The chief driver of second-quarter strength was consumer spending.

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Nonresidential fixed investment rose 6.9 per cent, up from an initial estimate of 5.2 per cent. Outlays on intellectual property products, structures and equipment were revised upward. The second-quarter saving rate was previously reported at 3.8 percent. It surged by 3.0 percent in the April-June period, the Commerce Department said in its updated report Wednesday.

Against the euro, the dollar rose 0.3% to $1.1933 and gained 0.4 against Japan's yen to Y110.16.

This was the second of three estimates the government will provide for second-quarter growth.

During last year's campaign, Trump pledged to boost economic growth to 4 per cent or better.

Economists forecast strong annual GDP - but not Trump's 3%

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Latest figures from the Office for National Statistics showed growth of just 0.3% in the second quarter, lagging behind other members of the G7 group of large developed economies - even before the latest upgrade from the US.

This came in much higher than the 185,000 forecast by analysts, and upped the ante on expectations for Friday's report, where forecasts now sit at 180,000 - which is close to the average monthly increase this year. The recent estimate marked the fastest growth in two years, the release said.

That was revised up from the 2.8 percent pace reported in July and accounted for the bulk of the pickup in economic growth in the second quarter.

Economists are also estimating how Hurricane Harvey could affect third-quarter growth. Economists had expected second-quarter growth to be revised up to 2.7%. That's still well under the Federal Reserve's desired inflation rate in a range of 2.0% to 2.5%. "'GDP is down to 7 percent.' And I'm saying, 'We're hitting 1 percent'".

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