Q2 growth bounces back at a healthy 4%

[WASHINGTON] US economic growth accelerated more than expected in the second quarter and the decline in output in the prior period was less steep than previously reported, which could bolster views for a stronger performance in the last six months of the year.

Gross domestic product expanded at a 4 per cent annual rate as activity picked up broadly after shrinking at a revised 2.1 per cent pace in the first quarter, the Commerce Department said yesterday.

That pushed GDP above the economy's potential growth trend, which analysts put somewhere between a 2 per cent and 2.5 per cent pace.