WASHINGTON—The U.S. economy grew an estimated 3.1% in the second quarter, the Commerce Department said in its latest and final estimate.
The positive Q2 growth revision was due to inventory accumulation, which increased almost $4 billion from the previous estimate, said NAFCU Research Assistant Yun Cohen.
The department's Bureau of Economic Analysis recently released the third estimate.
Cohen noted that the increased estimate for inventory accumulation was moderately offset by decreased estimates for residential and business investments. Government spending was also slightly revised upward, but it remained negative.
"Consumer spending continues to boost the economy as the labor market tightens," Cohen said. "The only sizeable drag came from residential investment as housing starts slowed during the quarter. Looking ahead, recent hurricanes will likely hinder economic growth for the next few months.
"The Federal Reserve of Atlanta currently expects GDP growth to decelerate to 2.1% in the third quarter. However, rebuilding efforts will likely boost growth in the fourth quarter and early 2018," Cohen added.