Between the months of April to June, the economy grew at a rate of 1.7 percent.
The growth rate indicates that the economy will stay weak for the rest of the year. The initial estimate was 1.5 percent and the stronger growth rate can be contributed to an increase in exports and much stronger consumer spending.
When looking at the past growth rates, it is still weak when compared to the 2 percent rate in the beginning of the year and the 4 percent rate for the fourth quarter in 2011.
Many economists predict that only modest improvements are expected for the rest of the year. The rate is expected to be subpar as it is expected to only grow at an average rate of 2 percent.
An economist for the RDQ elaborates on how the economy was very sluggish in the second quarter of 2012 and the upward revision does not mean much as the picture does not change at all. The government report looked at the GDP rate for the second time in the year. Gross Domestic Product included the construction of highways and the purchase of restaurants. During the end of the month, another report on GDP will be released.
The unemployment rate is expected to stay above 8 percent for the rest of the year. Many economists predict that the high unemployment rate and the weak economy will hurt President Obama as he is looking to get re-elected in the next election. The Republican candidate Mitt Romney is planning on pointing out the dismal growth in his next speech. An Economist named Robert Brusca elaborates on how the growth rate is positive news as the American economy moves forward. Consumer demand increased which ultimately drives approximately 70 percent of the GDP.
Overall, the growth rate may be low but America will maintain its resilience.