The
U.S. economy grew at its fastest pace in 2-1/2 years in the second
quarter with all sectors contributing to the jump in output in a bullish signal
for the remainder of the year. The Commerce Department raised its
estimate of gross domestic product to show the economy expanded at a 4.6 percent annual rate.
But consumer
spending, which accounts for more than two-thirds of U.S. economic activity,
was unrevised as stronger healthcare outlays were offset by weaknesses in recreation and durable goods spending. With domestic
demand increasing at its fastest pace since 2010, the economic recovery
appeared more durable after growth slumped in the first quarter because of an
unusually cold winter.
So far, economic data such as
manufacturing, trade and housing suggest that much of the second-quarter
momentum spilled over into the third quarter. Growth estimates for the
July-September quarter range as high as a 3.6 percent pace.
The strong growth
pace and domestic demand growth help to explain the robust job gains during the
quarter, as well as the sharp decline in the unemployment rate.
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