Much to the obvious dismay of the Washington Post, the U.S. economy rebounded strongly between April and June, government data showed Friday morning, driven by a pickup in spending from the federal government and consumers.
The country’s gross domestic product, a broad measure of economic activity, grew 2.6 percent at an annualized pace in the second quarter of 2017, the Commerce Department said.
Economists had expected growth to rebound from a weaker reading in the first quarter, which is typically dragged down due to seasonal problems with measurement. GDP grew at an annual rate of 1.2 percent in the first quarter, compared with 1.8 percent growth in the fourth quarter of 2016.
Growth was buoyed by investment from sectors like information technology and the oil and gas industry, which is finally reinvesting as global oil prices recover from previous lows, said Charles Seville, senior director at Fitch Ratings. “Investment, which has disappointed over the past couple years, is coming back, and that’s an encouraging sign for the future,” he said.
The current economic expansion is already the third-longest on record, surpassed only by periods of growth in the 1960s and 1990s.
Other measures give a picture of a healthy economy. Employers continue to add jobs at a steady pace, and the unemployment rate fell to a 16-year low in May, before ticking up in June.
Companies such as Boeing, Facebook and Shell reported strong quarterly earnings this week, spurring U.S. stock indexes to fresh highs.
Source: Washington Post