US services data suggests 2nd-qtr GDP may be revised up

[WASHINGTON] US economic growth for the second quarter is likely to be revised slightly higher after data on Wednesday showed a more robust pace of consumer spending than previously estimated.

The Commerce Department's quarterly services survey, or QSS, showed consumption, including healthcare spending, increased at a faster pace than the government had assumed in its second estimate of gross domestic product published last month.

JPMorgan said the data suggested second-quarter consumer spending could be raised by at least five-tenths of a per centage point to a 3.6 per cent annual rate when the government publishes its third GDP estimate later this month.

However, the QSS also implied that the estimate for growth in intellectual products investment would be revised down to a 8.2 per cent rate from a 8.6 per cent pace.

All told, the QSS suggested second-quarter GDP growth could be raised to a 3.9 per cent pace from the 3.7 per cent rate reported last month, JPMorgan said.

REUTERS