U.S. Markets

U.S. services data suggests upward revision to second-quarter GDP

A waitress waits for plates in the kitchen of a restaurant in Bayou La Batre, Alabama November 10, 2009. REUTERS/Carlos Barria

WASHINGTON (Reuters) - The U.S. economy probably grew faster than reported in the second quarter, with data on Thursday suggesting stronger consumer spending than previously estimated.

The quarterly services survey, or QSS, from the Commerce Department implied consumer spending increased more briskly than the 3.3 percent annualized rate reported last week in its second estimate of gross domestic product.

The QSS report added to data on construction spending and factory orders in suggesting that second-quarter GDP growth could be revised higher from its 3.0 percent rate when the government publishes its third estimate later this month.

Considering the construction, factory orders and QSS data, JPMorgan is forecasting that GDP growth for the quarter would be raised to a 3.4 percent rate.

“We believe that the QSS points to an upward revision to the ... estimate of real consumption growth,” said economist Daniel Silver of JPMorgan in New York.

Reporting by Lucia Mutikani; Editing by Lisa Von Ahn