Second-Quarter Rebound Obscures Same Reality for U.S. Growth
- GDP figures to reflect dissipation of some temporary factors
- Economy chugs along without chance for major acceleration
Consumer spending, which accounts for about 70 percent of GDP, probably accelerated to a 2.9 percent annualized pace of growth.
Photographer: Patrick T. Fallon/BloombergConsumers probably spent enough last quarter to help U.S. growth rebound from a tepid start to the year. The rest of the economy is giving less of a lift, and the pickup is unlikely to last.
Gross domestic product expanded at a 2.7 percent annualized rate from April to June, according to the median estimate in a Bloomberg survey ahead of figures due Friday. While that would be an improvement over the first quarter’s 1.4 percent, some of the upswing owes to the dissipation of temporary factors such as low heating bills, delayed tax refunds and volatility in inventories. Meanwhile, a gangbusters pace of business investment earlier in 2017 may have eased to a more sustainable rate.