The United States economy grew at an annual rate of 4 per cent in the second quarter.
The US Commerce Department raised its estimate of GDP - the measure of total goods and services output within US borders - from a 3.4 per cent gain that it published a month ago.
That was in line with Wall Street economists' forecasts and far outstripped the first quarter's anaemic 0.6 per cent rate of expansion.
However, the rebound in growth is not likely to be sustained. Since the April-June quarter, a credit squeeze stemming from rising defaults for subprime mortgages has disrupted financial markets worldwide and led policy-makers and analysts to scale back estimates for US economic growth in coming quarters.
Other government data also showed that jobless claims unexpectedly rose last week.
The government's core personal consumption expenditure price index - a measure of inflation that strips out volatile energy and food prices - rose 1.3 per cent annual in the second quarter, compared to a rise of 1.4 per cent in the three months prior.
The main sources of the upward revision in second-quarter economic growth were healthier business investment and a better trade performance than the department estimated a month ago.
Strong business investment led the fastest pace of expansion since early last year, the US government reported today.