U.S. Economy Surges Past Expectations as Spending, Investment Soar

The U.S. economy expanded faster than initially estimated in the spring, as Americans spent more freely and businesses stepped up investment, according to revised government data. Gross domestic product rose at a 3.3 percent annualized rate in the second quarter, up from the Commerce Department’s initial 3.0 percent estimate and above the 3.1 percent pace economists had forecast. The acceleration followed modest growth in the first quarter. The upward revision reflected households spending more on health care, pharmaceuticals and dining out, while companies boosted purchases of equipment and intellectual property. Business investment was driven by stronger outlays on software, research...