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Revival in US growth

July 30, 2015

The US economy has logged a solid performance in the second quarter following a harsh winter period. Economists say the revival was due mainly to healthy consumer spending and a pick-up in exports.

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US shoppers
Image: AP

The US economy showed strong signs of revival in the April to June period, the Commerce Department reported Thursday.

It said gross domestic product in the country rose by 2.3 percent, up from a revised 0.6-percent increase in the first quarter of 2015.

Consumer spending, accounting for 70 percent of US economic activity, expanded at an annual rate of 2.9 percent, with the development being driven in no small way by sizeable employment gains in the US.

Spending spree

The second-quarter figures marked the best showing since a GDP gain of 4.3 percent in the third quarter of 2014.

"[The latest] GDP numbers deliver a double punch to US economy doom-mongers, painting a reassuringly bright picture of the health of the US economy so far this year and raising the odds of the Fed hiking interest rates in September," Markit Chief Economist Chris Williamson said in a statement.

While strong consumer spending was the main driver of growth in the second quarter, economic expansion was also helped by a rebound in export sales which had plunged in the previous three months.

The Commerce Department also pointed to a 6.6-percent rise in housing construction as a bright spot.

hg/sri (AP, AFP)