Economic Growth Reached 3 Percent in Second Quarter Rebound

(CN) — The U.S. economy grew at an annual rate of 3 percent during the second quarter, the fastest pace in more than two years, the Commerce Department reported Wednesday.

The government said the rebound between April and June was fueled primarily by consumer spending on cars and other goods.

The department had previously estimated the nation’s gross domestic product, the broadest measure of economic health, grew at a 2.6 percent growth rate.

Wednesday’s revised numbers are the best showing for the economy since a 3.2 percent gain in the first quarter of 2015.

It also represents a significant bounce from the anemic 1.2 percent growth rate reported for the first quarter of 2017.

For the second quarter, the government estimated that consumer spending grew at a 3.3 percent rate, the best showing in a year and up from an initial estimate of 2.8 percent growth.

Investment by businesses also improved to growth of 6.9 percent, reflecting higher spending on structures, equipment and intellectual property.

Spending by governments, which had grown 0.7 percent in the initial estimate, was revised down to 0.3 percent.

While the new number is certain to please President Donald Trump, even with the upward revision, the weak start to the year means that growth over the past six months has averaged 2.1 percent, the same pace seen for the recovery that began in mid-2009.

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