US Economy Grows 4%

After contracting in the first three months of 2014 due to adverse weather conditions, the US economy has bounced back with 4% growth in the second quarter of 2014

Morningstar News Team 30 July, 2014 | 4:00PM

The US economy grew at an annual rate of 4% in the second quarter, according to an initial government estimate. The figure marks a turnaround after gross domestic product registered its first decline in three years in the previous quarter. The rebound in the April to June period reflected gains in consumer spending and business inventory.

Consumer spending rose 2.5%, spurred by purchases of durable goods after growing just 1.2% in the previous quarter, the Bureau of Economic Analysis said. The boost in second quarter GDP outpaced economists' expectations. A survey of economists by Bloomberg news agency had predicted 3% growth in the period. Updated data showed first quarter growth fell a revised 2.1%, less than the 2.9% drop the Bureau of Economic Analysis reported last month.

The steep first quarter decline was attributed to an extremely hard winter that kept consumer spending down along with declines in private inventory investment and state and local government spending. The International Monetary Fund (IMF) last week lowered its 2014 growth forecast for the US economy, pointing to the extremely weak first quarter.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

About Author

Morningstar News Team  Please direct comments about this article to the News Team.

Audience Confirmation

By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites