US economic growth is quickest in two and a half years

US economic growth is quickest in two and a half years
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There has been further confirmation that the US economy is picking up.

The latest reading of GDP shows that between April and June it grew at its fastest pace in two and a half years.

The economy expanded at a 4.6 percent annual rate, better than the 4.2 percent earlier estimate, which did not take into account improved business spending and sturdier export growth.

Activity was broad-based, which augurs well for the remainder of the year.

Consumer spending, which accounts for more than two-thirds of US economic activity, was unrevised as stronger healthcare outlays were offset by weaknesses in recreation and durable goods spending.

With domestic demand increasing at its fastest pace since 2010, the economic recovery appeared more durable after growth slumped in the first quarter because of an unusually cold winter.

So far, economic data such as manufacturing, trade and housing suggest that much of the second-quarter momentum spilled over into the third quarter. Growth estimates for the July-September quarter range as high as a 3.6 percent pace.

This comes as the Federal Reserve contemplates hiking interest rates, which has helped push the dollar close to a four-year high against a basket of currencies.