Economists say the U.S. economy is back, and in a
That's because U.S. Gross Domestic Product grew a
whopping 4% in the second quarter.
GDP is the best measure of the economy's health. It's
a tally of all U.S. goods and services.
And that 4% is even better than what economists were
Economists say it also means that the decline we saw
in the economy earlier this year can be blamed mostly
on bad weather. But, even that number wasn't as bleak
as first reported.
It turns out the economy declined 2.1% in the first
three months of the year, not the 2.9% as originally
So what changed in the second quarter?
Economists say Americans emerged from a frigid winter
ready to spend. Consumer spending, which makes up
about two-thirds of economic activity, ramped up this
spring. People were spending money on big ticket items
like cars, appliances and furniture.
And Americans weren't the only ones buying. Foreign
countries grabbed up U.S. exports.
Business investments were also up.
And the second quarter GDP numbers could mark the
end of a strange disconnect. The first six months
of 2014 experienced the strongest hiring in eight
years, while the economy didn't even grow.
Experts believe this report could signal that the
overall economy is back on track.