Speed Reads

Economics

U.S. GDP surged 4 percent in Q2

The BLS' first measurement of Q2 GDP growth is out — and it brings two pleasant surprises.

The economy expanded at a 4 percent annualized rate, significantly above the 3 percent rate that economists had expected.

And first quarter GDP — which had been shown to have contracted at a 2.9 percent annualized rate, a slip mostly attributed to unseasonably bad weather — was revised from new data to have only contracted at 2.1 percent.

So, strong second quarter growth more than made up for the first quarter setback, setting the stage for strong overall 2014 growth and a continued recovery.