US growth picks up pace, but still shows an economy facing headwinds
Washington — The US economy gathered speed in the second quarter, more than doubling the growth pace of the first three months of the year as consumer and defence spending accelerated, according to data released on Friday. GDP increased 2.6% in the April to June period, compared with 1.2% in the first quarter, the commerce department reported. Nonetheless, the preliminary result, which is calculated from incomplete data that will be revised in the coming months, portrayed an economy facing significant headwinds. Forecasts had varied from 2.6% to 2.8%. A widening trade gap as well as slowing housing sales, business inventories and spending by state and local governments, all weighed on growth, according to the commerce department.
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.