Investing.com - The U.S. economy grew significantly more than expected in the second quarter, fuelling optimism over the outlook in the world’s largest economy, official preliminary data showed on Wednesday.
In a report, the Commerce Department said gross domestic product grew at a seasonally adjusted annual rate of 4% in the second quarter, easily surpassing expectations for growth of 3%.
The U.S. economy contracted by 2.9% in the first quarter, as harsh winter weather weighed on economic activity.
The data showed personal consumption grew 2.5% in the three months ended June 30, above expectations for a 1.9% gain, and up from 1.2% in the preceding quarter. Consumer spending typically accounts for nearly 70% of U.S. economic growth.
The GDP price index rose by 2% in the second quarter, above expectations for a 1.8% increase and up from 1.3% in the preceding quarter.
Following the release of the data, the U.S. dollar added to gains against the euro, with EUR/USD shedding 0.22% to trade at 1.3380, compared to 1.3399 ahead of the data.
Meanwhile, U.S. stock index futures extended gains. The Dow indicated a gain of 0.4% at the open, the S&P 500 pointed to a rise of 0.4%, while the Nasdaq 100 indicated an increase of 0.6%.