The U.S. economy expanded at an annualised rate of 2.2% in the latest GDP estimate, exceeding economists’ forecast for growth of 1.5%.
The latest figure was also slightly higher than the 2.1% growth recorded in the previous estimate, providing an updated measure of economic activity in the United States.
Gross domestic product measures the inflation-adjusted value of goods and services produced within the economy and is widely used to assess changes in overall economic activity.
GDP Growth Improves From Previous Reading
The latest 2.2% growth figure represented an increase of 0.1 percentage points from the previous reading of 2.1%.
It also exceeded the 1.5% forecast by 0.7 percentage points.
The data indicated that economic growth was faster than economists had anticipated for the period covered by the report.
Consumer spending and business investment were cited among the components supporting economic activity during the period.
Data Provides Further Measure of U.S. Economic Activity
The GDP figures come as economists and investors continue to assess U.S. economic conditions alongside inflation, employment, consumer spending and other indicators.
GDP data can influence expectations for the economic outlook, although individual releases are considered alongside a broader range of indicators when assessing the direction of the economy.
The stronger-than-forecast reading also provides additional information for Federal Reserve policymakers as they evaluate economic growth and inflation when determining monetary policy.
Further GDP Updates Expected
The latest GDP reading is a preliminary estimate and remains subject to subsequent revisions as additional economic data become available.
Future releases will provide updated information about the pace and composition of U.S. economic growth.
The current estimate showed annualised GDP growth of 2.2%, compared with the 1.5% forecast and the previous reading of 2.1%.