U.S. Economy Grew 3% in 2nd Quarter, Fastest Pace in 2 Years

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Shoppers in New York. Economic growth in the last quarter was marked by strong consumer spending. Credit Justin Lane/European Pressphoto Agency

The United States economy kicked into higher gear last quarter, the Commerce Department said on Wednesday, revising its initial estimate for growth upward to 3 percent — the fastest pace in two years.

The revised figure is still well below President Trump’s target of 4 percent, but it is a major improvement from the government’s initial reading last month of 2.6 percent growth.

It is also significantly better than the economy’s lackluster pace in the first quarter. The improvement was spurred in large part by strong consumer spending, with purchases of durable goods like automobiles and appliances rising strongly.

Most economists are looking for the economy to expand at a rate of roughly 3 percent in the second half of the year. That pace should be strong enough to keep job growth and wages on track for further improvement, while keeping the threat of inflation modest for now.

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Source: New York Times – Politics

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