U.S. economy shows promise in latest advance report
The U.S. economy could be rebounding ahead of schedule, according to the latest advance report produced by the Commerce Department this week. Gross domestic product increased at a 2.8% annualized rate last quarter, the Commerce Department's Bureau of Economic Analysis said in its advance estimate of second-quarter GDP, which was sent exclusively to certain news outlets and economic sources.
The Eccles Building in Washington, D.C., home of the U.S. Federal Reserve.--U.S. government photo
Economists polled by Reuters had forecast GDP rising at a 2.0% rate. Estimates ranged from a 1.1% rate to a 3.4% pace. The economy grew at a 1.4% rate in the first quarter.
U.S. central bank officials regard a 1.8% pace as the non-inflationary growth rate. Still, growth was slower than the 4.2% pace logged in the second half of last year.
Consumer spending, which accounts for more than two-thirds of the economy, increased at around a 2.3% rate after slowing to a 1.5% pace in the January-March quarter. Spending was driven by increased outlays on services like healthcare, housing and utilities as well as recreation, Reuters said.
Consumers "also boosted outlays on goods, including motor vehicles and parts, recreational goods and vehicles, furnishings and durable household equipment as well as energy products," Reuters added, using the advance estimate report as a source.
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