Strong US data backs rate rise case

The US economy expanded more than previously estimated in the second quarter of the year on stronger consumer spending and construction, backing the case for an interest rate rise before the end of the year.

The US Commerce Department said yesterday that GDP rose at a 3.9% annual pace in the April-June quarter, up from the 3.7% pace reported last month.

The data supports the case that the US economy may be gaining enough strength to withstand an increase in benchmark interest rates from record low levels, despite growing concerns about the global economy.