Growth Beats Estimate as U.S. Weathers Budget Cuts: Economy

The U.S. economy expanded more than estimated in the second quarter, providing evidence that growth is picking up as the nation overcomes the effects of federal tax increases and budget cuts.

Gross domestic product rose at a 2.5 percent annualized rate, up from an initial estimate of 1.7 percent, Commerce Department figures showed today in Washington. The median forecast of 79 economists surveyed by Bloomberg projected a 2.2 percent gain. Other reports today showed claims for unemployment benefits dropped and consumer confidence weakened.