U.S. GDP growth revised upwards to highest since Q4 2011

Economic growth in the United States was revised to the upside for second quarter of this year, as the pace of increase reached its largest level since October-December quarter of the year 2011. According to the final revision from Bureau of Economic Analysis, country's GDP added 4.6% on a yearly basis, while earlier assumptions predicted a 4.2% advance. The revised number matched average forecasts of economists. Business investment increased as much as 9.7% year-on-year, while companies' spending on equipment surged 11.2%. Household spending, in turn, expanded 2.5% and it accounts for 70% of U.S. economy. Revisions of these parts of the gross domestic product raised GDP by 0.35%, compared to previous data. Such a strong surge in output followed a 2.1% drop in the first quarter. As biggest American companies are positive on economic conditions in the U.S. in foreseeable future, they hire new workers, thus decreasing unemployment level, which is the second-important indicator for the Fed to adjust interest rates.

Additionally, the majority of experts are not expecting the U.S. economy to slow-down considerably towards the end of the year, as momentum is rather strong. GDP may climb around 3% in third and fourth quarters.