Gross domestic product was expected to increase at a 2% annualized pace in the second quarter.

Gross domestic product rose at a 2.4% annualized pace in the second quarter, topping the 2% estimate.

Consumer spending powered the solid quarter, aided by increases in nonresidential fixed investment, government spending and inventory growth.

A Commerce Department inflation gauge increased 2.6%, down from a 4.1% rise in Q1 and well below the estimate for a gain of 3.2%.