U.S. grew 2.5% in 2nd quarter on stronger exports

Written By doni icha on Kamis, 29 Agustus 2013 | 22.40

The U.S. economy grew at a 2.5 per cent annual rate from April through June, much faster than previously estimated, the Commerce Department announced today.

The U.S. also reported a decline in joblessness, with the number of people seeking U.S. unemployment benefits for July near the lowest level in more than five years.

Employers have added an average of 192,000 jobs a month since January, pushing the unemployment rate down to 7.4 percent in July from 7.6 per cent in June.

The steep revision in GDP growth was largely because U.S. companies exported more goods and imports declined. The improvement in the trade deficit helped offset weaker government spending.

Second-quarter growth was sharply higher than the initial 1.1 per cent rate from January through March.

Economists expect growth will stay at the 2.5 per cent rate in the second half of the year, helped by steady job gains and less drag from federal spending cuts. But some worry that increases in interest rates could slow the economy's momentum.

The U.S. Labor Department reported employers are reducing the number of layoffs, though few are hiring aggressively.

The four-week average for unemployment benefits inched up 750 people to 331,250 after reaching a 5 1/2-year low the previous week.


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