Economy grew during the second quarterThe U.S. economy grew during the April-June quarter as gross domestic product (GDP) increased 4 percent, according to The Washington Post.
The second-quarter figure is up compared with the first quarter, when GDP decreased 2.1 percent. Higher consumer and business spending reportedly helped the economy bounce back.
Various factors contributed to the growth: Consumer spending grew at a 2.5 percent rate; business investment in new equipment jumped at a 7 percent rate; and housing increased at a 7.5 percent rate.
The government released its annual revisions to GDP data for the previous three years. The revisions showed that growth was slightly faster in 2013 than previously thought; however, the government said growth in 2011 and 2012 was slightly lower than previously estimated. The new figures showed growth of 2.2 percent in 2013; 2.3 percent in 2012; and 1.6 percent in 2011.
Mark Zandi, chief economist at Moody's Analytics, says he expects continued solid gains in hiring to translate into strength in consumer spending. He also believes growth could accelerate to higher than 4 percent in 2015.
Date : 7/30/2014