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America’s economy is looking pretty sturdy after all

Federal Reserve Chair Janet Yellen testifies before the Senate Banking, Housing, Urban Affairs Committee on Capitol Hill in Washington, DC.
AP Photo/Susan Walsh
Remember “patient?” Such a lovely word.
By Melvin Backman
Published Last updated This article is more than 2 years old.

Just a few months ago, it looked like winter had sucked the life out of the US economy, with GDP shrinking in the first quarter. But that all changed in the spring.

The latest economic growth reading (pdf) showed a 3.7% expansion in the second quarter, which should ease a lot of fears.

In a cheerful sign, growth seemed to be pretty widespread, with private domestic investment being the only major category to have slowed down from the first quarter (thanks, oil). An earlier look at the second quarter had growth appearing a bit more tepid, though the first quarter was revised into positive territory.

Economists and investors alike have been looking for any signs that the economy is on solid footing heading into the next Federal Reserve meeting, when interest rates are expected to go up. Some had changed their minds amid the recent stock market turmoil linked to concerns over China, pushing back their rate hike expectations to as late as March 2016. But they may have to rework that calculus yet again.

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