US growth revised up to 1.7 percent

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US growth revised up to 1.7 percent

US growth revised up to 1.7 percent
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The US economy performed slightly better than originally thought in the second quarter of the year.

Gross domestic product expanded by 1.7 percent from the same period last year. The figures was revised up from last month’s 1.5 percent estimate due to stronger exports.

But it was still down on the first quarter’s 2.0 percent increase.

There was also an upward revision to growth in consumer spending – again the same numbers – 1.7 percent rather than the previously reported 1.5 percent.

The problem is that the US economy has to expand by 2.0 to 2.5 percent every quarter just to provide enough jobs for the rising population.

The jobless rate rose to 8.3 percent in July from 8.2 percent the prior month.

With unemployment stubbornly high the US central bank, the Federal Reserve is under pressure to provide more stimulus – in essence printing money – to boost growth and so create jobs.

Fed Chairman Ben Bernanke and his policymakers will tell the world what they plan to do after their next meeting in mid September.

Another report released at the same time as the GDP figures showed contracts to buy previously owned homes in July rose to their highest level since April 2010, suggesting the housing market recovery was gaining traction.