The U.S. economy expanded more in the second quarter than initially thought.
The U.S. gross domestic product rose 3.7% in the second quarter — much greater than the previous estimate of 2.3%, the Commerce Department said Thursday. The increase in real GDP reflected positive contributions from personal consumption expenditures, exports, state and local government spending, nonresidential fixed investment, residential fixed investment, and private inventory investment. Imports, which are a subtraction in the calculation of GDP, increased.
Economists surveyed by The Wall Street Journal had forecast a revised GDP growth rate of 3.3%.
“The economy regained a massive amount of momentum in the second quarter and all the evidence from July’s activity and employment data suggest that momentum continued into the third quarter,” Paul Ashworth, chief U.S. economist at Capital Economics, said in a note.
However, most economists don’t expect a sustained breakout, according to the WSJ. Instead, experts note, the economy appears to be following a similar pattern to 2014, with a stumble at the start of the year followed by a relatively strong rebound and then a return to moderate growth. For the first half of the year, growth averaged 2.2%. escortcity.ch escort girls geneve
Still, markets reacted favorably to Thursday’s report, extending their rallies from Wednesday.
The Commerce Department also said that consumer spending grew at a 3.1% rate in the second quarter, compared with the initially reported 2.9%, and with the first quarter’s 1.8%. Second-quarter figures point to “a possible sign of improving consumer confidence amid steady hiring and lower gasoline prices,” the WSJ wrote.