The revised second quarter growth estimate dropped from a reported 4 percent increase but the 3.8 percent figure marked the strongest GDP increase since a 4.8 percent surge in first quarter of 2006, the department said in a release. GDP in the first three months of 2007 grew at a 0.6 percent rate.

The government's price index for personal consumption increased 4.3 percent during the first quarter, compared to the previously estimated 4.2 percent climb. The PCE price gauge excluding food and energy increased at 1.4 percent, above a previously estimated 1.3 advance.

The price index for gross domestic purchases, which measures prices paid by U.S. residents, increased an unrevised 3.8 percent.

Imports decreased in the second quarter but the drop was only 2.7 percent, instead of the earlier estimated 3.2 percent decline. The data showed U.S. exports rose by 7.5 percent instead of rising 7.6 as earlier reported.

.