iStock/Thinkstock(WASHINGTON) — The U.S. economy has bounced back from the winter doldrums.
After contracting in the first quarter of 2014, gross domestic product (GDP) increased by 4 percent between April and June, according to the latest figures released on Wednesday by the Commerce Department.
“The big area that we saw an increase in GDP was after taking more than a percent off of GDP in the first quarter, we saw inventory bounce back and add almost 1.7 percent to that 4 percent growth figure,” says Diane Swonk, chief economist for Mesirow Financial in Chicago.
The better than expected bump in the second quarter was fueled in part by more consumer spending and business investment.
“We saw consumers spend more, particularly on big ticket items, vehicle sales have been strong. We also saw gains in investment, which is much needed at this stage of the game,” Swonk notes.
She adds, “I’m hoping to see at least a 3 percent handle on the rest of the summer. That would get us still to a year that’s probably about 1.7, 1.8 percent overall.”
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