U.S. economic growth surged 4 percent during the second quarter, the government said on Wednesday as consumer spending rebounded after a frigid first quarter slowed growth in the first quarter. The government also said that the important category of consumer spending rose by 2.5 percent, more than double the first quarter's rate.
Consumer spending makes up almost three-quarters of the U.S. economy, and during the second quarter American shoppers spent big on cars and trucks. Those items are categorized as durable goods because they are relatively long-term investments and they signal buyers' comfort with financial commitment.
On the commercial side of the account, the latest data from the Commerce Department showed that spending on home construction and home improvements rose 7.5 percent, the first gain since the fourth quarter of last year.