Growth in the US expanded in the second quarter at a greater pace than previously estimated, as personal consumption and non-residential investment increased by more than forecast in the flash estimate.
Building a more complete picture of gross domestic product in the April-June period, the US Bureau of Economic Analysis revised the rate of annual growth in the world's largest economy up to 3% from a previously stated 2.6%.
This represented a rapid expansion in growth compared with the first quarter, when the annual GDP rate grew at just 1.2%. Economists had expected second-quarter growth to be revised up to 2.7%.
With more data available, the increase in second-quarter GDP reflected bigger contributions from personal spending, investment, exports, federal expenditure and private inventory investment, according to the BEA data.
On the downside, residential investment and state and local spending were weaker than in the first three months of the year.
Profits from current production - that is corporate profits adjusted for the value of unsold inventory and capital consumption - increased by $26.8bn in the second quarter. This came in contrast to a decrease of $46.2bn in the January-March period.
Financial corporations were responsible for a decrease of nearly $30bn while non-financial companies increased nearly $65bn.
Ahead of Friday's publication of the monthly employment report and non-farm payrolls data, the ADP report on private payrolls showed that 237,000 jobs were added in August.
This came in much higher than the 185,000 forecast by analysts, and upped the ante on expectations for Friday's report, where forecasts currently sit at 180,000 – which is close to the average monthly increase this year.
"The ADP overshoot in August compared to our payroll model suggests we should move our forecast for Friday up to about 220K from 200K," said Ian Shepherdson, Chief economist at Pantheon Macroeconomics.
The dollar moved higher on the news of the jump higher in GDP, with the dollar index - a measure of the greenback's relative strength against a basket of rival currencies - climbing 0.5% to 92.68.
Against the euro, the dollar rose 0.3% to $1.1933 and gained 0.4 against Japan's yen to Y110.16.
In opening exchanges on Wall Street, the S&P 500 was flat at 2,445, while the Dow was also little changed at 21,860.