The US economy grew at an annualized rate of 1.7% in the second quarter (April-June) of the current year. The economic growth was faster than expectations and increases optimism about US economy. This growth rate is also higher compared to revised 1.1% growth in the previous quarter.
The increase in GDP growth was due to lower spending cut in the second quarter. The federal government cut spending by only 1.5% in the second quarter compared with a sharp drop of 8.4% in the first quarter. This confirms that US economy is growing at slow but steady speed.
