The United States economy grew in the second quarter of 2014 at an annual rate of 4.6%, the biggest rise since the end of the economic crisis in mid-2009, the Government announced today. The increase in gross domestic product (GDP) in the second quarter, previously calculated by the Department of Commerce by 4.2%, mainly due to increased exports and encouragement received by business investment.
In the second quarter, consumer spending, considered the real engine of the American economy accounting for over two thirds of GDP, increased at a sustained annual rate of 2.5%. In the first quarter, the economy had contracted by 2.1% mainly due to sluggish consumption during a winter that was particularly hard. The biggest rise in the second quarter was recorded in business investment, spending on infrastructure, such as offices and factories, which rose from 9.4% estimated earlier to 12.6%, and spending on machinery was revised upwards from 10.7 to 11.2%.
The increase registered in the export sector stood at 11.1% in the quarter, the largest increase in three years. However, stocks of companies remained stable, valued at 84,800 million, a high figure which could lead to slower growth of the business sector for the third quarter. Due to poor economic performance in the first quarter and even despite the strong rebound in growth between April and June, it is estimated that American GDP will grow all year around 2.1%, very similar to the 2.2% recorded around 2013.
No comments:
Post a Comment