The U.S. economy grew at a brisk pace during the spring quarter, an encouraging sign that economic momentum was building before the turmoil in financial markets.
The nation's output of goods and services expanded at a 3.7% annual rate in the second quarter, much faster than the 2.3% rate initially estimated last month by the Commerce Department.
An upward revision had been expected, but Thursday's report on the nation's gross domestic product was even better than what most economists had anticipated, thanks mostly to stronger business investments and the best percentage increase in state and local government expenditures in nearly 14 years.