Revised U.S. GDP at 4 Percent

Aug 30, 10:58 AM

Current Headlines: A revised picture of the U.S. springtime economy showed more strength than earlier estimated, the Commerce Department said Thursday.

The new seasonally adjusted gross domestic product rose at a seasonally adjusted 4 percent annual rate, the agency said. The revision reflected better business spending and exports than first thought.

The Wall Street Journal called it the strongest quarterly rate of GDP growth since 4.8 percent during the first three months of 2006.

Meanwhile, the number of U.S. workers filing new claims for jobless benefits jumped last week to the highest level since April, indicating slower growth in employment.

Originally, the government had estimated second quarter 2007 GDP rose 3.4 percent. First quarter 2007 GDP climbed 0.6.

The Commerce Department data showed corporate profits strengthened in the second quarter. Profits after taxes grew by 5.4 percent to $1.154 trillion, after rising by 1.5 percent in the first quarter.