The U.S. economy expanded at a 1.4 percent annualized rate, compared with a prior estimate of 1.1 percent, according to the latest figures from the Commerce Department. The upward revision to GDP reflected a smaller drag from inventories and higher exports.
Gross domestic income, which reflects all the money earned by consumers, businesses and government agencies, was revised to show a 0.2 percent drop rather than a gain. The decline compares with a prior estimate of a 0.2 percent gain and was due to a downward revision to state and local tax receipts as well as collections from oil and gas producers.
Households are driving the economy, making up for subdued business investment and lackluster demand from overseas. Consumer spending is projected again to drive growth in the third quarter, amid a pickup in hiring and nascent wage gains.
Meanwhile, before-tax corporate profits fell 4.3 percent in the second quarter from the same time last year, compared with a 4.9 percent drop previously reported, according the the Commerce Department. It was the fifth consecutive decline and the worst streak since the end of the recession in mid-2009.
According to the median forecast of economists surveyed by Bloomberg from Sept. 2 to Sept. 7, the economy will grow at a 2.8 percent rate in the third quarter before cooling to 2.4 percent in the last three months of the year.