WASHINGTON — The U.S. economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods.
The gross domestic product, the broadest measure of economic health, grew at an annual rate of 3 percent in the April-June quarter, the Commerce Department reported Wednesday. It was the best showing since a 3.2 percent gain in the first quarter of 2015.
The result is a healthy upward revision from the government's initial estimate of 2.6 percent growth in the second quarter. The growth rate in the January-March quarter was a lackluster 1.2 percent.
Paul Ashworth, chief U.S. economist at Capital Economics, said he believed that the strength in consumer spending should result in an "even stronger hand-off" for growth going into the current quarter. He predicted GDP would grow close to 3 percent this quarter.
For the second quarter, the government estimated that consumer spending grew at a 3.3 percent rate, the best showing in a year and up from an initial estimate of 2.8 percent growth. Much of the strength came from a sharp upward revision in spending on autos, which the government initially estimated as declining in the spring.
Investment by businesses also improved to growth of 6.9 percent, reflecting higher spending on structures, equipment and intellectual property.
Spending by governments, which had grown 0.7 percent in the initial estimate, was revised to a decline at a 0.3 percent rate. The downgrade reflects a 1.7 percent fall in spending by state and local governments.
This was the second of three estimates the government will provide for second quarter growth. Even with the upward revision, the weak start to the year means that growth over the past six months has averaged 2.1 percent, the same modest pace seen for the recovery that began in mid-2009.
Read Thursday's Arkansas Democrat-Gazette for full details.