WASHINGTON (Reuters) - Strong exports and consumer spending supported by government stimulus checks drove the U.S. economy up at a solid 3.3 percent annual rate in the second quarter, much faster than first thought, but growth is expected to flag as those factors fade.The U.S. Commerce Department on Thursday said consumer spending and net exports were more vigorous than initially estimated and that inventories fell less sharply. A month ago, it said U.S. gross domestic product had expanded at a 1.9 percent rate in the quarter.
The upward revision was much sharper than analysts had expected and added to evidence the U.S. economy may skirt the downturn many had forecast as a result of a deep decline in housing markets, tight credit and high energy and food prices.
The data and a drop in oil prices powered a big rally on Wall Street. The blue chip Dow Jones industrial average closed up 212 points, or nearly 1.9 percent. At the same time, the dollar rose and bond prices slipped as money moved into stocks.
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