Economy in U.S. Expands More Than Forecast on Inventories

The economy in the U.S. grew more than projected in the second quarter, showing it is overcoming the cuts in government spending and higher taxes.

Gross domestic product, the value of all goods and services produced, rose at a 1.7 percent annualized rate after a 1.1 percent gain the prior quarter that was smaller than previously estimated, Commerce Department figures showed today in Washington. Other reports showed hiring and manufacturing accelerated this month.