The U.S. economy sprang back to life in the April-June quarter, the government said Wednesday, growing at a fast 4 percent annual rate on the strength of higher consumer and business spending. The rebound reported by the Commerce Department followed a sharp 2.1 percent annualized drop in economic activity in the January-March quarter. That figure was revised up from a previous estimate of a 2.9 percent drop. But it was still the biggest contraction since early 2009 in the depths of the Great Recession. Last quarter's bounce-back was broad-based, with consumers, businesses, the housing industry, and state and local governments all combining to fuel growth. The robust expansion will reinforce analysts' view that the economy's momentum is extending into the second half of the year, when they forecast an annual growth rate of around 3 percent. The second quarter's 4 percent growth in the gross domestic product (GDP) was the best showing since a 4.5 percent increase in July-September quarter of 2013. A higher trade deficit was a small drag on growth, but even there analysts noted that exports posted a strong increase but this was offset by rising imports as a growing U.S. economy boosted demand for both U.S. and foreign goods.
