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U.S. Economic Growth Rebounds in Second Quarter
Topics:Consumers * Economy (U.S.) * Economy (Global)
By Reuters * 27 Jul 2007 * 08:36 AM ET
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U.S. economic growth rebounded during the second quarter to its strongest pace since the beginning of last year on a surge in business investment, more government spending and a better trade performance, the Commerce Department reported on Friday.
Gross domestic product that measures total output within U.S. borders gained at a 3.4 percent annual rate -- the fastest since 4.8 percent in the first quarter of 2006 -- after barely growing at a downwardly revised 0.6 percent pace in the first quarter. Previously the government had reported that first-quarter growth was at a 0.7 percent rate.
Second-quarter growth exceeded Wall Street economists' forecasts for a 3.2 percent rate of increase and showed the business sector picking up some of the slack left by consumers who cut back on their spending.
There was encouraging news on the inflation front, as so-called core prices that exclude food and energy items gained at a surprisingly low 1.4 percent annual rate, the lowest in four years since 1.3 percent in the second quarter of 2003.
Economists had forecast a 2 percent rate of advance in core prices.
Nonresidential business investment climbed at an 8.1 percent rate in the second quarter, nearly four times the 2.1 percent registered in the first quarter as commercial building activity soared.
Topics:Consumers * Economy (U.S.) * Economy (Global)
By Reuters * 27 Jul 2007 * 08:36 AM ET
Font size:
U.S. economic growth rebounded during the second quarter to its strongest pace since the beginning of last year on a surge in business investment, more government spending and a better trade performance, the Commerce Department reported on Friday.
Gross domestic product that measures total output within U.S. borders gained at a 3.4 percent annual rate -- the fastest since 4.8 percent in the first quarter of 2006 -- after barely growing at a downwardly revised 0.6 percent pace in the first quarter. Previously the government had reported that first-quarter growth was at a 0.7 percent rate.
Second-quarter growth exceeded Wall Street economists' forecasts for a 3.2 percent rate of increase and showed the business sector picking up some of the slack left by consumers who cut back on their spending.
There was encouraging news on the inflation front, as so-called core prices that exclude food and energy items gained at a surprisingly low 1.4 percent annual rate, the lowest in four years since 1.3 percent in the second quarter of 2003.
Economists had forecast a 2 percent rate of advance in core prices.
Nonresidential business investment climbed at an 8.1 percent rate in the second quarter, nearly four times the 2.1 percent registered in the first quarter as commercial building activity soared.
