GDP report indicates improving economy

Washington -- The U.S. gross domestic product rose at a better than expected 3.4 percent annual rate in the second quarter, the Commerce Department said Friday.

The report indicated an improving economy as the housing drag lessened and exports grew, The Wall Street Journal said.

It also drew praise from U.S. President George Bush who Friday hailed the "large, flexible and resilient" U.S. economy.

Inflation gauges were mixed. The government's price index for personal consumption surged 4.3 percent after rising 3.5 percent in the first quarter.

But the PCE price gauge excluding food and energy rose 1.4 percent after climbing 2.4 percent in the first quarter.

Consumer purchases of durable goods were reported up 1.6 percent in the second quarter. Durable goods are expensive items designed to last at least three years.

Copyright 2007 by United Press International.

Copyright 2007 by United Press International.