Dive Brief:
- The nation's GDP grew last quarter by an estimated 4%, which turned around a negative first quarter, though that was not as bad as first reported because the Commerce Department's regular process of revising estimates took the shrinkage from 2.9% to 2.1%.
- Fixed nonresidential investment was up more than the overall economy at 5.5% and residential grew more than 7%, Associated Builders and Contractors reported.
- Federal spending fell, but state and local rose enough to keep the overall number positive, and the growth in nonresidential supported a recent report that heavy and civil engineering companies are hiring again.
Dive Insight:
For those who want some caution with their celebration, economists factor out the GDP growth that results from businesses increasing or reducing inventories of their goods, either in their own warehouses or in stores. With that factor removed and actual sales included, Q2 growth was more like 2.3%. But compared to Q1's fall of 0.9%, that's good news, regardless.