US economy grows at fastest pace in nearly two years

The US economy grew faster than previously estimated in the second quarter amid strong consumer spending and business investment, though momentum appears to have ebbed against the backdrop of lingering uncertainty from trade policy.

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The quickest growth pace in nearly two years reported by the Commerce Department on Thursday also reflected a sharp contraction in the trade deficit as the flood of imports slowed.

The economy's resilience was underscored by other data showing strong demand by business for equipment in August and a drop in first-time applications for unemployment benefits last week as companies hoard workers.

The data at face value suggested further interest rate cuts from the Federal Reserve were probably unwarranted. Tepid hiring blamed by economists on President Donald Trump's tariffs on imports and an immigration crackdown caused job growth to almost stall in the three months through August, prompting the US central bank to resume cutting rates last week.