WASHINGTON — The U.S. economy grew at an even faster clip in the spring than previously estimated. But that growth likely slowed in the summer, held back by global headwinds and turbulent financial markets.
The overall economy expanded at an annual rate of 3.9 percent in the April-June quarter, up from a previous estimate of 3.7 percent, the Commerce Department reported Friday. The new-found strength came from additional gains in consumer spending, business investment and residential construction.
The second quarter expansion in the gross domestic product, the economy's total output of goods and services, was a marked improvement from an anemic 0.6 percent increase in the first quarter when the economy was battered by a harsh winter.
Economists estimate that growth in the third quarter has slowed to around 2.5 percent.
The revision in second quarter growth was led by a boost in consumer spending, which expanded at a 3.6 percent rate, up from the previous estimate of a 3.1 percent advance. The stronger result reflected increases in spending on such consumer services as health care and transportation.
See Saturday's Democrat-Gazette for full details.