The U.S. economy grew at a 3.3% annual rate in the second quarter the U.S. Commerce said today.

Economists had expected GDP to be revised upward to 3.6% from an initial reading of 3.4%.

A month ago, the U.S. government said GDP grew 3.4% in the quarter, a solid pace but slower than the first-quarter’s 3.8% rate. The lowering of the estimate to 3.3% was due to a downward revision in consumer spending and an upward revision to imports — offsetting an upward revision to inventory investment.

Corporate profits after taxes rose 6.9% to US$989.2 billion April through June. Earnings dipped 0.1% in the first quarter. Profits climbed 11.5% compared to the second quarter of 2004.

Inflation gauges for the second quarter were mixed. The government’s price index for personal consumption rose 3.2%, down from the previous estimate for the quarter of 3.3% but above the first quarter’s 2.3% climb.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, rose at a 3.1% rate, lower than the previously estimated 3.2% increase but above the first quarter rate of 2.9%.

U.S. exports rose by 13.2%, instead of the earlier reported 12.6% increase. Imports advanced 0.5%, instead of falling 2.0% as originally estimated.

The biggest component of GDP is consumer spending, accounting for about two-thirds of economic activity. Second-quarter spending climbed 3.0%, down from the previously estimated 3.3% gain and below the first quarter’s 3.5% advance.

Business spending rose 8.4%, below from the earlier estimated 9.0% increase but up from the first-quarter’s 5.7% climb.