The Commerce Department had some good news about the U.S. economy today: Rebounding from a quarter of negative growth, the country’s gross domestic product expanded at a 4 percent annual rate during the second quarter.
“The increase in real GDP in the second quarter primarily reflected positive contributions from personal consumption expenditures (PCE), private inventory investment, exports, nonresidential fixed investment, state and local government spending, and residential fixed investment,” Commerce said in a statement.
As The Wall Street Journal sees it, the positive news is fueling hopes “for sustained growth in the second half of 2014.” The newspaper adds:
“The solid gains come on the heels of a first quarter when the economy shrank at a 2.1% pace. While still the worst quarter of the current recovery, the figure reflects an upward revision from a previously estimated 2.9% contraction. The economy only grew at about a 1% pace for the first half of 2014.
“Annual revisions, also released Wednesday, showed the economy also expanded at a 4% pace in the second half of 2013, the best six-month stretch in 10 years.
“But figures over the past five years, including new revisions back to 2011, continue to tell a familiar tale. Unable to string together several quarters of steady growth, the recovery that began in 2009 is the weakest since World War II.”
Bloomberg reports that the newly released data drove equity futures higher and treasuries lower.
Later today, the Federal Reserve will release a statement with their appraisal of the U.S. economy.