U.S. Economic Growth Rate Surges in 2nd Quarter to 4.0%

The government's first look at the nation's GDP for the second quarter of 2014 showed that growth returned and the rate was even stronger than had been expected. The report stated that the economy's growth rate surged by +4.0% during the April through June period. The growth rate was well above Wall Street expectations for a rate of +3.2%, and also well above last quarter's pace of -2.1%. Note that last quarter's rate was revised higher from -2.9%. Prior readings for reference purposes: Q1 2014: -2.1% Q4: +2.6% Q3: +4.1% Q2: +2.5% Q1 2013: +1.8% Q4: +0.1% Q3: +3.1% Q2: +1.3% Q1 2012: +2.0% Q4 : +3.0% Q3: +1.8% Q2: +1.3% Q1 2011: +0.4% Q4: +3.1% Q3 +2.6% Q2: +1.7% Q1 2010: +3.7%. Note that the country's GDP has now increased in 19 of the past 20 quarters. On the inflation front, the Deflator came in at +2.0%, which was above the estimates for a reading of +1.8% and above Q1's final reading of +1.3% (Q4: +1.6%, Q3: +2.0%). Finally, Personal Consumption was also stronger than expected, sporting a gain of +2.5% on an annual basis. This was also above the last read of +1.0% (Q4 2013: +3.3%).