By Jonathan Davies

The US economy grew much faster than first estimated in the second quarter, according to official statistics.

The Commerce Department initially said the economy grew by 2.3% compared with the same period last year. But it now says growth was 3.7%.

It said the revision was down to much larger corporate investment that first estimated. Overall, the economy benefited from greater consumer and government spending and a rise in exports.

Growth in the first quarter remained unchanged at 0.6%.

The announcement created further surges on Wall Street. On an already strong day of trading, shares on the Dow Jones rose another 0.6%, the S&P 500 rose 1% and the Nasdaq was up 1.4%.