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U.S. economy grew at strong 4% rate in spring

July 29, 2014 News Extra

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WASHINGTON — After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending, the Commerce Department reported this morning.

The rebound followed a sharp 2.1 percent annualized drop in economic activity in the January-March quarter. That was the biggest contraction since early 2009 in the depths of the Great Recession.

Last quarter’s rebound was broad-based, with consumers, businesses, the housing industry and state and local governments all combining to fuel growth. The robust expansion will reinforce analysts’ view that the economy’s momentum is extending into the second half of the year, when they forecast an annual growth rate of around 3 percent.

The second quarter’s 4 percent growth in the gross domestic product — the economy’s total output of goods and services — was the best showing since a 4.5 percent increase in July-September quarter of 2013.

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