US GDP revised to 4.2% in second quarter

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After a bleak start to the year, the U.S. economy rebounded vigorously in the second quarter, growing at a brisk annual rate of 4.2 per cent, slightly faster than first estimated.

The upward revision supported expectations that the second half of 2014 will prove far stronger than the first half.

The Commerce Department's second estimate of growth for last quarter compares with its initial estimate of 4 per cent. The revision reflected stronger business investment in new equipment and structures than first thought.

The seasonally adjusted 4.2 per cent annual growth rate for the gross domestic product came after the economy had shrink at an annual rate of 2.1 per cent in the January-March quarter, the biggest drop in activity since the depths of the Great Recession.

Additional reporting PA