With strong second quarter, US GDP growth up to 3 percent

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It also represents a significant bounce from the anemic 1.2 percent growth rate reported for the first quarter of 2017.

Consumer spending powered the second-quarter surge, rising a revised 3.3% compared to the government's original estimate of a 1.9% gain.

The new second-quarter estimate "points to solid momentum in domestic demand", Barclays said in a note to clients immediately after the figure was released.

The Commerce Department offers three estimates of growth as more data becomes available, with the third and final figure for second-quarter economic activity to be released on September 28.

"For the first time since the Great Recession ended in mid-2009, the economy is not facing any significant headwinds", Zandi said.

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The dollar firmed against a basket of currencies, while prices for U.S. Treasuries fell. The saving rate slipped to 3.7 percent from 3.9 percent in the first quarter. Treasury Secretary Steven Mnuchin has said it will take up to two years for the economy to sustain this pace, while some economists have said the target is too high. The nonpartisan Congressional Budget Office sees growth averaging 1.9 percent over the next decade, a forecast much closer to estimates made by private economists.

The GDP price index rose by 1.0%, the consensus estimate expected by Bloomberg.

It was the strongest quarterly growth for the United States in over two years and was driven by USA families and businesses opening their wallets a little wider. Spending on equipment jumped at a rate of 8.8 percent.

For the record, the list of countries that could possibly express any emotion about their annual growth rates of 7 percent or more is extremely short.

Investment on nonresidential structures increased at a 6.2 percent pace, rather than the previously reported 4.9 percent rate. Housing was a drag on growth in the last quarter, with investment on homebuilding recording its worst performance in almost seven years.

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