Economy expanded at 1.7 percent pace during the second quarter

The U.S. economy expanded during the second quarter as gross domestic product (GDP) increased 1.7 percent, which was significantly stronger than analysts expected, according to The Washington Post.

The second-quarter figure is up compared with the first quarter, when GDP increased 1.1 percent. The economy grew as businesses spent more and the federal government cut less.

Businesses increased their spending 4.6 percent during the second quarter after cutting by the same amount during the previous quarter. Spending on home construction grew 13.4 percent, which is similar to the first quarter.

The federal government cut spending by only 1.5 percent after an 8.4 percent drop in the first quarter. And state and local governments increased spending for the first time in a year.

Economists believe growth could improve to about 2.5 percent during the third and fourth quarters.

The government released comprehensive revisions that updated the U.S.'s GDP from the past several decades; the figures showed the economy grew at 2.8 percent in 2012, which is up from an earlier estimate of 2.2 percent.

Date : 7/31/2013