Gross domestic product up 3.7% in 2nd quarter
BUSINESS RECORD STAFF Aug 27, 2015 | 3:31 pm
1 min read time
191 wordsAll Latest News, Economic DevelopmentThe U.S. economy was in even better shape than we thought between April and June, CNN Money reported.
The U.S. economy grew 3.7 percent in the second quarter, a significant upward revision from the first official estimate of 2.3 percent, according to the Commerce Department’s measure of gross domestic product. Economists had projected the new number to be 3.2 percent.
Thursday’s upward revision is welcome news as China’s slowing economy is sparking volatility in stock markets, plunging currencies in emerging markets and potentially delaying a rate hike from the U.S. Federal Reserve.
Construction and business spending rose in the three months, helping drive the overall GDP number up.
The good economic data only increases the speculation about when the Fed will raise its key interest rate. For much of the summer, economists believed the Fed would do a rate hike in September. But with China’s devaluation of the yuan and the recent turmoil in U.S. stock markets, the consensus is gradually shifting to December for a rate hike.
Rate hike rumblings aside, the revised GDP figure shows that the U.S. economy is still having a solid year despite all the headwinds abroad.
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