U.S. Economy Grew at 4.6% Rate in Second Quarter

Click here to read the WSJ article. Excerpts:

"The U.S. economy grew in the spring at the fastest pace since late 2011, another sign the recovery is regaining steam after a rough start to the year.

Gross domestic product, the broadest measure of goods and services produced in the U.S., expanded at an annual rate of 4.6% in the second quarter, the Commerce Department said Friday in its third estimate of the gauge. The agency previously pegged April-through-June growth at 4.2%.

The economy last grew at a 4.6% pace in the fourth quarter of 2011 and hasn't exceeded that rate since the first three months of 2006, during the last economic expansion.

The spring's strong showing owed partly to a rebound from a severe winter, when the economy contracted at a 2.1% pace [that is, GDP was down 2.1% in the first quarter at an annual rate]. Combining the two quarters, the economy grew at a pace just above 1% in the first half of 2014."

"Unemployment, at 6.1% in August, remains historically high, though it has come down sharply. And despite stronger job growth this year, workers' wages are barely climbing faster than consumer prices. The housing market is struggling to regain momentum, and weakness in overseas economies is threatening to hurt U.S. exports."