US growth rebounds in second quarter

Written By Unknown on Rabu, 30 Juli 2014 | 20.24

30 July 2014 Last updated at 13:43

The US economy grew at an annual rate of 4% during the April to June period, latest figures released by the US Department of Commerce have shown.

Consumer spending - which makes up over two-thirds of US economy activity - grew by a robust 2.5%.

Business spending increased by 14% as economic activity forced businesses to restock depleted inventories.

The growth during the second quarter reverses the contraction seen earlier in the year.

From January to March, the US economy shrank a revised 2.1% on an annualised basis as a result of harsh winter weather.

However even with the rebound, the winter is likely to mean overall growth this year will be only 1.6% - less than in 2013.

That could cause the Federal Reserve - which ends a two-day meeting on Wednesday - to continue to keep interest rates low for an extended period into 2015.


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