US economy expected to grow faster than previously estimated
According to revised official figures, the second quarter of the year saw the US economy grow faster than previously anticipated.
The surprise positive news was due to strong consumer spending, business investment and residential construction, according to the US Department of Commerce.
The economy expanded at an annualised rate of 3.9%, as opposed to the 3.7% figure that had been previously expected. The rate is also much higher than the 0.6% recorded in the first quarter.
In the wake of the new figures, Federal Reserve head Janet Yellen said that economic growth appeared to be "solid" and that the prospect of an interest rate rise this year remained "on track."
The conditions would be right for a rise as long as inflation remained stable and the US economy kept on boosting jobs, Yellen said.
Nine years of near zero
Last week, the Federal Reserve decided to keep its key interest rate unchanged at a record low near zero, where it has been since the 2008 financial crisis.
When rates do rise, it will be the first time in at least nine years. Wall Street welcomed Ms Yellen's comments and the GDP figures, and the Dow Jones rose 1% in the next morning trade.
Chief investment officer for Plante Moran Financial Advisors, Jim Baird commented: "Overall, the outlook on the US economy for the remainder of the year remains fairly optimistic, supported by continuing job creation, increasing consumer spending, improvements in the housing sector, and solid manufacturing numbers."