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US GDP report indicates improving economy

The US gross domestic product rose at a better than expected 3.4% annual rate in the Q2, the Commerce Department said Friday.

The report indicated an improving economy as the housing drag lessened and exports grew, The Wall Street Journal said. It also drew praise from US President George Bush, who Friday hailed the “large, flexible and resilient” US economy. Inflation gauges were mixed. The government’s price index for personal consumption surged 4.3% after rising 3.5% in the Q1. But the PCE price gauge excluding food and energy rose 1.4% after climbing 2.4% in the Q1. Consumer purchases of durable goods were reported up 1.6% in the Q2. Durable goods are expensive items designed to last at least three years. (