Economy Surged at 4% Rate in Spring
Further growth expected in 2014; revisions show fast growth in 2013
By Newser Editors and Wire Services
Posted Jul 30, 2014 8:30 AM CDT
Consumers helped boost the economy this spring.   (AP Photo/Fay Abuelgasim)

(Newser) – After a dismal winter, the US economy sprang back to life in the April-June quarter, growing at a fast 4% annual rate on the strength of higher consumer and business spending. That beat economists' expectations, the New York Times notes. The Commerce Department says the second-quarter rebound followed a sharp 2.1% annualized drop in economic activity in the January-March quarter. Another big number, as per the AP: Revised figures from the second half of 2013 show the American economy growing at the fastest rate in a decade.

That 2.1% figure was revised from a previous estimate of a 2.9% decline. But it was still the biggest contraction since early 2009 during the depths of the Great Recession. Last quarter's rebound was broad-based, with consumers, businesses, the housing industry and state and local governments all combining to boost growth. Economists expect that momentum to continue in the second half of this year, when they forecast growth of around 3%. For the math-challenged among us, the Times explains the number in five graphics.

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Showing 3 of 61 comments
Jeff Haugan
Jul 31, 2014 5:50 PM CDT
Isn't interesting that the growth rate of the Obama administration and the Bush administration is almost the same, and yet we heard almost everyday during the bush admin how awful the economy was from all the leading pundits. These same pundits now are exclaiming how great everything is under Obama. Course, they never tell you that the real unemployment/undereployment rate is around 18% and that the work participation rate is at the lowest recorded level since the great depression. think there is a little bias going on here?
????
Jul 30, 2014 7:42 PM CDT
That's because US raped Ukraine and stole all the gold.
haggrr
Jul 30, 2014 1:25 PM CDT
From a 2.9% decline to a revised 2.1% gain? That's a 5% swing. What is going on?