After a harsh winter, the United States economy grew 4 percent in its second quarter, April to June, the Commerce Department said Wednesday, July 30.
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According to the Associated Press, the growth mainly came from strong consumer and business spending. In its first estimate, the government expected strong figures in personal consumption spending, exports and private inventory investment.
The New York Times reported that the growth exceeded economists’ estimation and strengthened their thoughts that the first-quarter GDP’s 2.1 percent drop was due to harsh winter weather.
“The really ugly GDP report for the first quarter was likely the result of mostly one-off events,” Bob Baur, chief global economist for Principal Global Investors, said before the data was released.
Douglas Handler, chief United States economist for IHS Global Insight Analysis, agreed with Baur and said one-off events have lasting effects rather than only short-term impacts on the economy.
“If you go to a restaurant every week and couldn’t this year because of the snow, you’re not going to now go out twice a week or order two dinners,” Handler said. “That GDP will be permanently lost.”