US GDP growth better than expected

US economic growth was less sluggish than previously thought in the second quarter as exports grew more than imports and businesses raised their investments, hopeful signs for the economic outlook.

GDP expanded at a 1.4% annual rate, the US Commerce Department said yesterday, in its third estimate of GDP. That was up from the 1.1% rate it reported last month and higher than analysts’ expectations.

The revision incorporated data that showed businesses cut investments in buildings and equipment less than the American government previously estimated, while they sank more money into R&D.