2Q economic growth better than expected
The U.S. economy grew at a better-than-expected rate during the second quarter, propelled by increased consumer, business, and government spending.
Gross domestic product, the broadest sum of goods and services produced across the economy, expanded at a 3.7% seasonally adjusted annual rate in the second quarter of 2015, the Commerce Department said Thursday, up from an initial estimate of 2.3% growth.
The latest GDP numbers show some underlying momentum but also possible headwinds for the U.S. economy, the Wall Street Journal reports.
Consumer spending, which represents more than two-thirds of economic output, grew at a 3.1% rate in the second quarter, compared with the initially reported 2.9%. The new reading is an improvement over the first quarter’s 1.8%.
Spending on home building and improvements increased by 7.8%, and experts believe the upward trend may continue into the third quarter — July single-family housing starts and existing home sales both reached new post-recession highs.