(Reuters) – The U.S. economy rebounded more strongly than initially thought in the second quarter with a bigger chunk of the growth driven by domestic demand in a bright sign for the future.

Gross domestic product expanded at a 4.2 percent annual rate instead of the previously reported 4.0 percent pace, the Commerce Department said on Thursday.

Both business spending and exports were revised higher, while a buildup in business inventories was smaller than previously estimated – a mix of growth that provides a stronger underpinning for the remainder of the year.  Read more