The US economy recovered more stronglyin the second quarter with the country’s gross domestic product (GDP) expanding at a 4.2 percent annual rate, rejecting all the previous estimations of slower pace, the Commerce Department said on Thursday.
The GDP expanded at a higher pace than the previously reported estimations of 4.0 percent after the high domestic demand buoyed the growth, indicating brighter days ahead for the economy.
The experts, however, stressed even if the US economy grew slightly more than expected but many crucial areas still need urgent attention to fully rebound from the economic crisis.
Gross domestic product (GDP) is total calculation of goods and services produced in the United States.
“The economy is in good shape and it’s getting better,” said Joel Naroff, chief economist at Naroff Economic Advisers in Holland, Pennsylvania.
“It’s a good number, but it’s hard to read a lot into, because we are coming out of bad winter when people didn’t want to spend a lot of money. A lot of the growth was pent-up demand from a winter when people didn’t want to go out and spend a lot of money,” said Christian Weller, a professor at Boston’s University of Massachusetts.
Meanwhile, both exports and business spending were revised higher.
As the economy shrank at a 2.1 percent pace in the first quarter of 2014 and now expanded at 4.2 percent rate, the economists expect a total economic growth of around 2 percent in 2014 with GDP expanding at a pace of about 3 percent next year.
On the other side, the jobless claims for availing unemployment benefits witnessed a decline for the straight second week. A report released on Thursday showed that the number of unemployed Americans filing new jobless aid applications dropped 1,000 to a seasonally adjusted 298,000 last week.
The gross domestic income also jumped at a 4.7 percent pace on consistent and near stable labor market during the quarter. Experts say this is the fastest rise since the first quarter of 2012.
Meanwhile, the US dollar emerged firm against a basket of foreign currencies including Euro. But the US stock market was down on rising crisis in Ukraine.