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The U.S. economy bounced back in the second quarter of 2014, following a rough winter that saw slow job growth. However, today’s numbers from the Commerce Department paint a new picture, showing the country’s gross domestic product up 4.0 percent.
That was much better than what some economists expected. Those surveyed by The Wall Strret Journal had predicted a GDP growth of 3.0 percent.
It is also a significant uptick from the first quarter’s dismal numbers. According to the Associated Press, previous data had shown that GDP srunk by 2.1 percent in the first three months of the year. However, the Commerce Department’s report revised that decline to a 2.9 percent drop. Still, that was the largest drop since the 2009 Great Recession, even if weather was most likely the cause.
“Consumers are spending thanks to job and income gains, and with borrowing costs still low businesses are investing to meet stronger demand,” PNC Financial Services Group economist Stuart Hoffman told the WSJ.
Taking today’s good news into account, Capital Economics’ Paul Ashworth told the AP that he is now predicting end-of-the-year stats to show a 2 percent GDP growth this year. The government said that the economy grew 2.2 percent in 2013 overall.