WASHINGTON (8/30/13)--The U.S. economy grew at a faster pace in the second quarter than previously estimated, with business investment and exports revised upward, resulting in a smaller trade deficit and inventory gains trumping the effects of federal budget cutbacks (The Wall Street Journal, Bloomberg.com and The New York Times Aug. 29).
The U.S. gross domestic product--the most comprehensive gauge of goods and services produced in the economy--increased at a 2.5% annualized rate in the second quarter, an upward revision from an initial 1.7% estimate last month, the Commerce Department said Thursday.
The economy's expansion is consonant with projections that the nation is withstanding the downward pull of higher taxes and federal budget cuts, and that the economy is set to pick up once those impediments dissipate, Bloomberg said.
Consumer confidence is being bolstered by home-price and employment gains--and that indicates households will sustain consumer spending, which is the largest part of the U.S. economy, Bloomberg said.
The economy is performing well and will weather sequestration, resulting in accelerating growth in the second half of the year, Brian Jones, a senior U.S. Economist at Societe Generale in New York, told Bloomberg.