Washington, DC, United States (4E) – The U.S. economy bounced back after a slowdown in the first quarter, posting a positive growth over the last six months, adding to hopes that the second half of the year will have sustainable growth.
The gross domestic product (GDP), which is the broadest measure of goods and services produced in the economy, rose at an annual rate of 4.0 percent in the second quarter on seasonally adjusted terms, according to the Commerce Department report released Wednesday. Economists polled by The Wall Street Journal forecast a 3.0 percent growth for the quarter.
The improvement in GDP comes after a contraction in 2.1 percent in the first quarter. The figure was an upward revision from the initial estimate of 2.9 percent decline. The GDP only increased at around 1 percent for the first half of the year.
Wednesday’s report showed household spending climbed at 2.5 percent, up from a 1.2 percent rise the first quarter. Personal consumption was led by spending on goods such as home furnishings and cars. A modest rise health-care spending comes after a fall in the previous quarter.