US adjusts economy upwards in Q2; Grows 6.7%, expected 6.6% – Economic News

The gross domestic product of the world’s largest economy grew 6.7% in the second quarter of the year compared to the previous three months, according to a final estimate by the Bureau of Economic Analysis (BEA).

The US economy’s progress in the July-September period was higher than expected by analysts polled by financial investment portal Investing.com, who had expected a 6.6% increase – as happened in the second review of the data -.

Personal consumption expenditures (PCE) rose 12% in the second quarter compared to the previous three months, the highest increase in the past three quarters.

Prices measured in PCE terms rose 6.5% in the second quarter—the largest increase since the third quarter of 1981—and advanced at an annual rate of 3.9%.

Finally, core PCE prices, or the measure that underestimates changes in highly volatile products like food or energy, rose 6.1% in the quarter, and increased 3.4% annually.

Analysts consulted by Investing forecast 3.7% growth in prices measured on a PCE basis and 6.1% in the core component.

This last measure, the inter-annual variance of PCE core prices, is the most closely watched by the Federal Reserve (Fed) to determine monetary policy actions in the United States.