Bloomberg is reporting that the economy expanded more than previously estimated in the second quarter, reflecting gains in consumer spending and exports that are being threatened by costlier gasoline and a global slowdown.

Bloomberg said, based on revised Commerce Department figures, GDP climbed at a 1.7% annual rate from April through June, up from an initial estimate of 1.5% and following a 2% gain in the first three months of the year. The weakest gain in business investment in new equipment in almost three years restrained the pace of growth, which was the slowest since the third quarter.

Bloomberg noted that consumers and companies may continue to curb spending in the second half of the year as rising fuel costs, unemployment and the prospect of tax changes and government budget cuts hurt confidence.

To read the Bloomberg story click here.