Washington, DC, United States (4E) – The U.S. economy expanded in the second quarter, boosted by improved corporate profits, raising the prospects for a sixth straight year of positive growth.
The country’s gross domestic product (GDP) rose by an annual rate of 4.2 percent in the second quarter on a seasonally adjusted basis after taking into account inflation, according to the Commerce Department.
Last month, the agency forecast the economy to climb 4 percent in the second quarter, based on preliminary trade and other data. The headline figure, which is the broadest measure of goods and services produced in the economy, contracted by the 2.1 percent in the first quarter, due to slowing exports and a decline in consumer spending that was partly attributed to the severe winter weather.
Economic indicators for July have been favorable, with the industrial production rising 0.4 percent from June, according to the U.S. Federal Reserve report. Housing starts improved 15.7 percent and new orders for durable manufactured goods surged 22.6 percent on higher demand for aircraft, according to data from the Commerce Department.
Meanwhile, retail sales was nearly unchanged in July from the previous month, which indicates that consumer spending continues to be constrained by slow wage growth.