Economy grows at better-than-expected 1.7 percent in 2Q

The United States’ gross domestic product — a measure of output of goods and services in the U.S. and a measure of the overall growth or contraction of the  U.S. economy — grew at an annualized rate of 1.7 percent in the second quarter of this year (from the first quarter), according to data released by the Department of Commerce’s Bureau of Economic Analysis.

Most had forecasted the economy to grow at a rate of about 1 percent to 1.4 percent, but personal consumption expenditures, exports, nonresidential fixed investment, private inventory investment and residential investment were all positive contributions to the economy, says the BEA, and offset cuts in federal government spending.

The economy grew at a 1.1 percent rate in the first quarter over the fourth quarter of 2012 — a downward revision from previous reports.

Click here to see a full report on the GDP report from Bloomberg.