GDP is Revised Upward, Boosted by Defense

[QuietStorm]

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WASHINGTON (Reuters) - Soaring defense spending pushed U.S. economic growth in the second quarter to a faster pace than previously thought, the government said on Thursday in a report that was the latest in a string of data indicating the economy is on the mend.

Gross domestic product, or GDP, grew a revised 3.1 percent in the second three months of the year, the Commerce Department said -- a figure broadly in line with Wall Street expectations for a 3.0 percent gain. That was up from the 2.4 percent rise estimated a month ago and followed anemic 1.4 percent growth in each of the two prior quarters.

It was the fastest expansion since the third quarter of last year and is likely to bolster hopes for strong growth in the current quarter.

"The GDP numbers were very favorable and showed strong momentum and growth in some key areas," said Paul Ferley, assistant chief economist at Bank of Montreal.

ah yes the profits of war.
http://www.reuters.com/newsArticle.jhtml?type=topNews&storyID=3350989&src=eDialog/GetContent§ion=news