WASHINGTON: US economic growth unexpectedly accelerated in the second quarter, laying a firmer foundation for the rest of the year that could bring the Federal Reserve a step closer to cutting back its monetary stimulus.

Gross domestic product grew at a 1.7 per cent annual rate, the commerce department said on Wednesday, stepping up from the first-quarter's downwardly revised 1.1 per cent expansion pace.

Economists polled by Reuters had forecast the economy growing at a 1.0 per cent pace after a previously reported 1.8 per cent advance in the first three months of the year.

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