GDP Grows at Fastest Rate in 2 Years

The US economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods, per the AP. The gross domestic product, the broadest measure of economic health, grew at an annual rate of 3% in the April-June quarter, the Commerce Department reported Wednesday. It was the best showing since a 3.2% gain in the first quarter of 2015. The result is a healthy upward revision from the government's initial estimate of 2.6% growth in the second quarter. The growth rate in the January-March quarter was a lackluster 1.2%. Even with the upward revision, the weak start to the year means that growth over the past six months has averaged 2.1%, the same modest pace seen for the recovery that began in mid-2009.

During last year's presidential campaign, Donald Trump attacked the Obama administration's economic record, pledging to double GDP growth to 4% or better. His first budget, sent to Congress earlier this year, projects growth rates will climb to a sustained annual rate of 3%, a goal that many private economists believe is still too optimistic. For the second quarter, the government estimated that consumer spending grew at a 3.3% rate, the best showing in a year and up from an initial estimate of 2.8% growth. Much of the strength came from a sharp upward revision in spending on autos, which the government initially estimated as declining in the spring. (More US economy stories.)