Investing.com - The U.S. economy grew at a slightly faster pace than originally estimated in the second quarter, according to data released Wednesday, with the rate of growth the fastest since late 2014.
Gross domestic product expanded at a 4.2% annual rate in the three months to June, instead of the previously reported 4.1% pace, the Commerce Department said in its first GDP revision.
That was nearly double the 2.2% expansion registered in the first quarter and was the fastest rate of growth since the third quarter of 2014. Analysts had been expecting a decline to 4%.
Compared to the same quarter a year earlier, the economy grew 2.9%, up from the previously reported 2.8%.
Exports were revised down to 9.1% from 9.3%, while imports were revised to show a drop of 0.4%, from an increase of 0.5% in the initial estimate.
The upbeat data underlined expectations for the Federal Reserve to stick to plans for further gradual rate hikes.
Fed Chairman Jerome Powell said late last week that the strength of the U.S. economic expansion justifies gradually raising interest rates.
The Fed is widely expected to raise interest rates in September, with traders currently pricing in a 100% chance of an increase according to Investing.com’s Fed Rate Monitor Tool, with the probability of another move in December seen at roughly 72.3%.
Those would come after rate hikes in March and June of this year.