GDP has averaged annual growth rates of just 2.2 percent in this recovery, which is now the third longest in USA history.
Increases in consumer spending and business investment powered almost all of the revision issued on Wednesday.
The budget the president released in May projects GDP growth will rise to 3 per cent over the next four years and remain at that level for the rest of the decade.More news: Pope to Visit Myanmar, Bangladesh Amid Rohingya Crisis
The price index for gross domestic purchases increased 0.8 percent in the second quarter, compared with an increase of 2.6 percent in the first quarter. Economists had expected that second-quarter GDP growth would be raised to a 2.7% rate.
"We're still in the slow-lane economy", said Stuart Hoffman, senior economic adviser at PNC Financial Services Group. "All of those things weighed on US growth". While that was up from the 1.9 percent reported last month, economists said it was unlikely growth this year would breach Republican President Donald Trump's ambitious 3.0 percent target.
The second quarter growth in 2017 of 3 percent, which includes performance from April, May, and July, more than double the 1.2 percent growth seen in the first quarter of 2017. He predicted GDP would grow close to 3 per cent this quarter. Government spending fell at a 0.3 per cent rate, dragging down growth by 0.05 percentage point. Housing was a drag on growth in the last quarter, with investment on homebuilding recording its worst performance in almost seven years.More news: South Korea: Kim Jong Un's third child born in February
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.
For the record, the list of countries that could possibly express any emotion about their annual growth rates of 7 percent or more is extremely short.
Residential fixed investment and state and local government spending were both downwardly revised, offsetting a larger second quarter increase.More news: Israel settlements big hurdle to two-state solution
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