The US economy grew at a 1.7 percent annual rate in the April-June quarter, boosted by slightly firmer consumer spending and stronger exports.

The US Commerce Department yesterday said growth was slightly better than its initial estimate of 1.5 percent.

Economists expect a little better growth in the second half of this year after seeing some improvement in July data. But most believe the economy will keep growing at a subpar rate of around 2 percent.

Growth at or below 2 percent is not enough to lower the jobless rate, which was 8.3 percent in July. Most expect the rate to stay above 8 percent for the rest of this year. A weak economy could hurt US President Barack Obama re-election hopes and help Republican candidate Mitt Romney.

The report on economic growth measures the gross domestic product output, the country's total output of goods and services, from the purchase of restaurant meals to construction of highways and bridges. Yesterday's report was the government's second look at GDP for the spring quarter. There will be a third and final estimate of second-quarter GDP released next month.

The third quarter began with some promise.

Employers created 163,000 jobs in July, the most since February. Also in July, consumers raised retail spending, factories produced more goods, and the housing recovery continued with increases in both new and previously occupied homes.

The upward revision to second-quarter growth was largely because consumers spent at a slightly faster pace of 1.7 percent. Exports grew at 6 percent.