WASHINGTON — (CNN) The U.S. economy grew 2.3 percent in the second quarter, according to new data out Thursday.
That’s slightly below expectations. Experts were hoping for 2.5 to 3 percent growth.
America’s economy picked up some momentum this spring and summer, but it didn’t wow.
It grew 2.3% between April and June compared to the same time a year ago, according to the Commerce Department’s first estimate of gross domestic product, the broadest measure of economic activity.
Many experts were predicting a stronger number in the 2.5 to 3 percent range. Instead, America got a good — but not great — sign that the economy got its act together after a shaky start to 2015.
The question coming into Thursday was whether the cold weather and other temporary factors were to blame for economy’s woeful performance between January and March.
Or, conversely, if more long-lasting factors, like a strong U.S. dollar — which can hurt trade — and a lack of consumer spending, would hammer the economy for the entire year.
It appears the dollar and consumer spending are still drags on the economy, but not as much as feared.
Previous government estimates on economic growth between January and March showed the economy shrank a little from the same time a year ago.
However, the Commerce Department introduced a new model Thursday for measuring economic growth, and it raised the first quarter growth figure to 0.6 percent.
The prior estimate said the U.S. economy contracted in the first quarter.
Economic growth is extra important this year because America’s central bank, the Federal Reserve, could raise its key interest rate as early as September for the first time in almost a decade.
But it needs to see strong economic growth before its highly anticipated meeting in mid-September.
It’s unclear how much confidence Thursday’s “okay” GDP report will give the Fed’s committee members.
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