US grows 4% in Q2 as economy bounces back

US GDP growth has risen more than expected in Q2, according to initial estimates, with the contraction in the first quarter less bad than had been feared.

The 4% figure is above consensus expectations of an annualised 3% growth rate. The 2.9% Q1 contraction, meanwhile, was revised down to 2.1%. Revisions to older data showed the economy grew 4% in the second half of 2013, the best six-month performance for a decade. The US Bureau of Economic Analysis said the rise reflected "positive contributions from personal consumption, private inventory investment, exports, non-residential fixed investment, state and local government spending, and residential fixed investment," set against a weather-affected first quarter. "These GDP figures fir...