WASHINGTON (AP) – After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending, the Commerce Department reported Wednesday.
The rebound followed a sharp 2.1 percent annualized drop in economic activity in the January-March quarter. That figure was revised up from a previous estimate of a 2.9 percent drop. But it was still the biggest contraction since early 2009 in 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 fuel growth. The robust expansion will reinforce analysts’ view that the economy’s momentum is extending into the second half of the year, when they forecast an annual growth rate of around 3 percent.
The second quarter’s 4 percent growth in the gross domestic product – the economy’s total output of goods and services – was the best showing since a 4.5 percent increase in July-September quarter of 2013.
The economy’s sudden contraction in the first quarter of this year had resulted from several factors. A severe winter disrupted activity across many industries and kept consumers away from shopping malls and auto dealerships. Consumer spending slowed to an annual growth rate of just 1.2 percent, the weakest showing in nearly three years.