The US economy grew by 4.6% in the second quarter of 2014, the fastest pace since the last quarter of 2011 when it also expanded by 4.6%, the Commerce Department reported in its 3rd estimate of the gauge. It had previously reported April-June GDP growth at 4.2%.
The last time the country’s economy had expanded by more than 4.6% in one quarter was in Q1 2006.
Part of the reason for such a strong second quarter was an adjustment from an abnormally severe winter which saw the economy shrink in the first quarter. If the two first quarters of this year are combined, the economy grew by just 1% in H1 2014.
During the spring, many businesses restocked their shelves after winter blizzards disrupted operations.
Economists say data is pointing to another strong showing in the third quarter.
Third quarter looking good
With strong job growth and business and private spending up, most estimates place GDP growth for the third quarter at above 3%.
The Federal Reserve insists the economy is still not performing to its full potential.
US GDP during the second quarter grew by 2.6% compared to the same 3-month period last year.
With the economy appearing to be firing on nearly all cylinders, traders are bracing themselves for a sooner-than-expected interest rate hike from the Federal Reserve.
Only the US, UK, Ireland and a couple of other economies worldwide are growing strongly. China’s growth is slowing down, Japan’s domestic demand has been weak since April 1st when the sales tax hike came into force, Germany is faltering, the Eurozone has ground to a halt, Russia is facing serious problems, and Brazil is in recession.