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GDP Expanded at 4.2% Rate in Second Quarter

Wall Street Journal (08/28/14) Ben Leubsdorf; Sarah Portlock

U.S. gross domestic product grew at a seasonally adjusted annual rate of 4.2% during the second quarter, according to the U.S. Department of Commerce. The previous estimate was a 4.0% growth rate, while economists surveyed by the Wall Street Journal had forecast a 3.8% pace. Business spending grew more than expected, while American corporations posted higher profits.

GDP contracted at a 2.1% rate during the first quarter. The economy averaged a weak growth rate of 1.1% during the first half of the year.