The US economy grew even faster than previously thought in the second quarter. The latest revision shows that April-June saw a 4.6% increase in economic output. Previous estimates for GDP showed a 4.2% growth rate.
The second quarter had the biggest economic expansion since 2011. The strong spring followed a dismal start to the year. The first quarter had a 2.1% drop in GDP, mostly due to a particularly bad winter. Economists believe solid growth will continue through the rest of 2014, and into 2015.
The third quarter comes to an end on September 30th. Economists are predicting around 3% growth for the third quarter, which would represent another strong showing for the US economy.
There are few hurdles facing the US economic outlook going forward in 2014. Congress recently avoided another government shutdown, and with midterm elections coming up there shouldn’t be too many waves coming from Washington. Unemployment continues to fall, and the number of people with health coverage has increased dramatically thanks to the Affordable Care Act. The federal deficit has also been falling the past few years, and continues to do so in 2014.