WASHINGTON — The U.S. economy surged in the April-June quarter, growing at an annual rate of 4.1 percent.
That’s the fastest pace since 2014, driven by consumers who began spending their tax cuts and exporters who sought to get their products delivered ahead of retaliatory tariffs.
The Commerce Department reports the gross domestic product, the country’s total output of goods and services, posted its best showing since a 4.9 percent gain in the third quarter of 2014.
President Donald Trump predicts growth will accelerate under his economic policies.
But private forecasters cautioned the April-June pace is unsustainable because it stems from temporary factors. The rest of the year is likely to see good, but slower growth of about 3 percent.
The economy grew at a slightly slower pace last year than previously believed, but Americans’ saving rate was a lot higher, thanks to a flood of previously unreported income.
The government each year revises the GDP figures back for three years. But every five years, it conducts a “comprehensive update,” which examines GDP figures back to 1929.
The biggest change in the new report is that proprietors’ income, the earnings reported to the Internal Revenue Service by proprietors and partnerships, was under-reported.
The overall GDP growth rate last year stands at 2.2 percent, down from 2.3 percent previously reported.