Second-quarter U.S. economic growth was revised up to the psychologically important 3% mark while private employers added far more jobs than expected in July.
Gross domestic product rose at the fastest pace in two years, revised up from the initial reading of a 2.6% gain, the Commerce Department said. Economists had expected a 2.8% reading. Consumer spending was revised up to a 3.3% pace, the best in a year. Nonresidential fixed investment grew at an upwardly revised 6.9% annual rate.
Meanwhile, private companies added 237,000 jobs last month, the strongest gain in five months. according to the ADP Research Institute. That was well above estimates for 185,000. June's gain was revised up substantially to 201,000. Factories added 16,000 jobs, with goods-producing industries hiring a net 33,000 overall. Service jobs climbed by 204,000.
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The ADP report has a mixed record of tracking the U.S. nonfarm payrolls data. which also include government employment. Economists expect the Labor Department to report on Friday a rise of 180,000 jobs, down from June's 209,000.
Hurricane Harvey will have a mixed impact on economic growth. In the near term it will be slow economic growth as refineries and shipping stalls. But the devastation will spur a construction boom, while perhaps some 500,000 autos may need to be replaced.
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