Real GDP grew at a 2.2% annual rate from April through June, the Bureau of Economic Analysis said Wednesday, up from the 1.5% it reported in both earlier estimates.
The upgrade came mostly from investment, consumer spending and government spending. Consumer spending, investment and exports led the quarter's growth, while imports, which subtract from GDP, also rose. First-quarter growth was revised to 2.5%.
Real final sales to private domestic purchasers, a cleaner read on underlying demand, rose 4.6%. Corporate profits from current production increased $384 billion in the quarter.
Prices stayed hot. The PCE price index rose 5.0% in the quarter, and the core index excluding food and energy rose 3.3%, both revised down slightly from the prior estimate.
Markets read the strength as a reason for rates to stay high: the S&P 500 slipped 0.3% Wednesday, the Dow fell 443 points, and the 10-year Treasury yield climbed to 5.29%, a level last seen in 2002, per AP.