The U.S. economy provided double the pleasure in the second quarter of what it did in the first quarter.
The U.S. economy grew at a 2.8 percent annualized rate in the second quarter, capping two years of solid expansion, despite some signs of softening.
According to statistics released Thursday by the U.S. Department of Commerce, growth in the gross domestic product for the quarter ending June 30 was double the 1.4 percent reading in the previous quarter. Commerce Department statistics do show, however, that those numbers reflect a cool-down from last year’s pace.
“Economic growth is solid, not too hot and not too cold,” Chris Rupkey, chief economist at Fwdbonds, a financial research firm, told The Washington Post. “The soft patch we had at the beginning of the year has gone away, and with it, the risks of a recession are dying on the vine.”
https://datawrapper.dwcdn.net/ZyEwE Consumer spending, business investments and new inventory drove almost all of the second quarter’s growth, The Post reported. Continued government spending at the federal, state and local levels also helped prop up the GDP reading, which sums up goods and services produced in the United States.
Consumer spending, slower earlier in the year when cold weather kept shoppers out of stores, came back strong in the second quarter, as Americans spent money on goods such as cars, recreational vehicles and furniture, The Post reported.
On Thursday, President Biden used the solid report to enhance his economic message, touting nearly 16 million new jobs, wage gains and low unemployment during his presidency.
“Today’s GDP report makes clear we now have the strongest economy in the world,” he said in a statement.
