US economy grew at 3.7 per cent in April-June quarter

Buoyed by strong growth in personal consumption, the US economy grew at an annual rate of 3.7 per cent in the second quarter, faster than previously estimated, reflecting a surge of growth of the American economy, the government said today.
"The economy grew at a much faster pace in the second quarter than in the first, with strong personal consumption leading the rebound," said Jason Furman, Chairman of the Council of Economic Advisors at the White House.
The economy as measured by gross domestic product expanded at an annual rate of 3.7 percent in the April-June quarter, more than a percentage point greater than the initial 2.3 percent estimate, the Commerce Department said.

"At this time in the global economy, it is essential that we continue to do everything we can to maintain America's domestic economic momentum-including avoiding a return to fiscal brinksmanship or unnecessary austerity by passing an on-time budget that reverses the sequester, increasing investments in infrastructure as part of a long-term transportation reauthorisation, and other steps to foster long-term growth," Furman said.
According to latest figures released, the Real Gross Domestic Product (GDP) rose 3.7 per cent at an annual rate in the second quarter, well above the first quarter's 0.6 per cent pace and the initial second-quarter estimate of 2.3 per cent growth.

In the second quarter, the increase in GDP growth was led by a faster pace of personal consumption growth than in the first quarter and a shift from negative to positive net export growth.

Structures investment, which declined sharply in the first quarter and was previously thought to have declined in the second, is now estimated to have grown.
Overall, real GDP has now risen 2.7 per cent over the past four quarters, the White House said.
According to The Wall Street Journal, the economy appears to be following a similar pattern to 2014, with a stumble at the start of the year followed by a relatively strong rebound.

But the overall story has been one of modest growth, with full-year GDP advancing from 1.5 per cent to 2.4 per cent each of the past four years.
The latest GDP numbers, it said, offer a backward view of the economy, of course, detailing a three-month stretch that ended in June.
"Concerns about China have since buffeted global markets and introduced greater uncertainty into forecasts for the US economy.
But economists and policy makers will examine the latest numbers closely for clues on what factors may be adding to growth in the current quarter," the daily reported.