U.S. Economy Grew at 2.5 Percent Rate in Spring

In this photo from Aug. 19, 2013, shoppers walk toward the parking lot at a Best Buy store in Hialeah, Fla.

Gross domestic product expanded at an annualized rate of 2.5 percent from April to June, considerably above earlier estimates of 1.7 percent growth.

Associated Press + More

By MARTIN CRUTSINGER, Associated Press

WASHINGTON (AP) — The U.S. economy grew at a 2.5 percent annual rate from April through June, much faster than previously estimated. The steep revision was largely because U.S. companies exported more goods and imports declined.

The Commerce Department said second-quarter growth was sharply higher than the initial 1.7 percent rate it reported last month. And the growth this spring was more than double the 1.1 percent rate from January through March.

The improvement in the trade deficit helped offset a weaker government spending.

[READ: Applications for U.S. Unemployment Aid Fall to 331K]

Economists expect growth will stay at the 2.5 percent rate in the second half of the year, helped by steady job gains and less drag from federal spending cuts. But some worry that increases in interest rates could slow the economy's momentum.

 

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