Investments, spending accelerate Q2 GDP growth

Washington

THE US economy expanded in the second quarter at the fastest rate since the last three months of 2011 as companies stepped up investment and households boosted spending. Gross domestic product (GDP) grew at a revised 4.6 per cent annualised rate, up from a previous estimate of 4.2 per cent, Commerce Department data showed on Friday in Washington. The increase matched the median forecast of 81 economists surveyed by Bloomberg and followed a 2.1 per cent decline in the first three months of the year.

Busier assembly lines at the nation's factories and job growth that's kept Americans spending indicate companies are a bit more upbeat about the prospects for demand. As the world's largest economy and labour market improve, Federal Reserve policymakers are debating how much longer to keep interest rates near zero. Forecasts for second-quarter GDP ranged from gains of 3.4 per cent to 5 per cent, according to the Bloomberg survey. The estimate is the third and final for the quarter.