Economy Grew By 3.4% in Q2

From Bloomberg:

The 3.4 percent annual pace of expansion, the most in more than a year, followed a revised gain of 0.6 percent in January to March, the Commerce Department reported today in Washington. The Federal Reserve’s preferred inflation gauge rose at the slowest pace in four years.
Spending on commercial construction projects rose at the fastest pace in 13 years, helping to overcome another drop in homebuilding. Factories ramped up production to fill orders from Europe and Asia that made up for a slowdown in consumer spending. Treasury securities erased gains, stock-index futures trimmed losses and the dollar remained higher.
“The good news is that capital spending and exports are growing,” said Nariman Behravesh, chief economist at Global Insight Inc. in Lexington, Massachusetts. Still, “the economy is plodding along. We’re very vulnerable to a shock.”

Posted by Eddy Elfenbein on July 27th, 2007 at 10:20 am

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