US economy grew at 1.4 per cent rate in spring
WASHINGTON — The U.S. economy expanded at a slightly faster pace in the spring than previously reported, aided by new-found strength in business construction.
The Commerce Department said Thursday the gross domestic product, the broadest measure of the economy, expanded at an annual pace of 1.4 per cent in the April-June quarter. That is up from a previous estimate of 1.1 per cent growth. Much of the upward revision reflected an increase in spending on structures such as office buildings.
The modest second quarter gain followed weaker readings of 0.8 per cent GDP growth in the first quarter and 0.9 per cent in the final three months of last year. Economists, however, believe the economy has accelerated in the current quarter, helped by strong consumer spending.
“Because this revision was largely due to new June data, this suggests that the quarter ended stronger than it started,” said Steven Wood of Contingent Macro Research.