New revisions show stronger economic growth in second quarter

The big picture: The GDP figures suggest the economy boomed in the April-June period.

Yes, but: Some of that was a result of trade whiplash. Companies rushed to import goods in the first quarter to get ahead of President Trump's tariffs. That depressed growth then, with GDP contracting by 0.6%.

• Imports are a subtraction in the calculation of GDP.
• The reversal of that import activity in the second quarter strengthened GDP.

Driving the news: The Commerce Department revised second quarter GDP up by 0.5%, "primarily reflecting an upward revision to consumer spending," the government said in a release.

• A narrow measure of economic growth, which excludes volatile categories like trade and inventories and is adjusted for inflation, was revised up by a full percentage point to 2.9%.

The bottom line: The stronger-than-expected GDP data comes alongside reassuring labor market data.

• Jobless claims came in at 218,000, roughly 14,000 fewer than the previous week — a continued reversal of the upward surge seen in recent weeks.