The US Commerce Department on Wednesday revised upwards its estimate for second-quarter GDP growth in the world's largest economy, moving it up by 0.7 percentage points to 2.2 percent. "The contributors to the increase in real GDP in the second quarter were consumer spending, investment, and exports. Imports, which are a subtraction in the calculation of GDP, increased," the Bureau of Economic Analysis said in a statement. The new data will come as a boost to US President Donald Trump as his Republican Party heads into key midterm elections in November, with the state of the economy a key issue for voters. In terms of specific industries, the leading contributors to the increase were real estate, information, durable goods manufacturing, and finance and insurance, the BEA said. Decreases came from the transportation and retail trade, as well as from non-durable goods manufacturing. The BEA also revised upwards its estimate of GDP growth in the first quarter of this year by 0.4 percentage points to 2.5 percent. That change was primarily driven by upward revisions to consumer spending and services exports, the department said. In a separate release, the BEA said the US Federal Reserve's preferred inflation gauge stood at 3.4 percent year-on-year in August, unchanged from the month before after a revision to the July data. US households and businesses have been battered by years of high prices since the pandemic, with the Fed missing its long-term two-percent target for inflation since early 2021. Earlier this month, the Fed raised interest rates for the first time in three years to combat inflation. Wednesday's data was for the Personal Consumption Expenditures (PCE) price index, the Fed's targeted gauge. US inflation has been stoked by some of Trump's policies, including his imposition of widespread tariffs. His launching of the Iran war has sent global energy prices sky-rocketing, with US consumers paying an average of 50 percent more at the pump. Core PCE inflation, which strips out volatile energy and food prices, came in at 3.0 percent year-over-year. Markets are closely watching inflation data to gauge the Fed's next move. On Tuesday, an influential US central banker said there was no "urgency" to raise rates again, even as he indicated one more rate hike could be needed before the end of the year. (AFP) Edited by Robert Kemp