GDP revised up more than expected on stronger business and consumer spending
The Commerce Department's second estimate of gross domestic product released Wednesday printed at 3%. Economists had forecast a slight increase to 2.7% from 2.6% on the back of stronger consumer spending.
President Donald Trump had set a 3% target for long-term economic growth.
Personal consumption, the biggest part of the economy, was revised up to 3.3% in the second estimate.
A third estimate based on more complete data will be released on September 28.
Amid the tragedy of Hurricane Harvey, economists are estimating how it could impact third-quarter growth.
"Our point estimate remains for a small drag on growth in Q3: measured Q3 real GDP growth will be only slightly (~0.1ppt QoQ SAAR) lower due to Harvey," said Citi's Andrew Hollenhorst in a note Tuesday.
"The output reduction could be greater if the disruption is longer lasting or if there are larger knock-on effects outside the region. For instance, stoppages at oil refineries could curtail activity further down the supply line."