U.S. economy gets a boost with second quarter GDP numbers
Wednesday, July 30, 2014 - 01:14
Analysts say strong GDP numbers and continuing improvement in the jobs sector point to a possible interest rate hike sooner than later. Mana Rabiee reports.
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Wall Street opened on a positive note this morning following good news about U.S. economic growth.
Second-quarter growth came in much stronger than expected, overshadowing a weak report on the labor market.
Gross domestic product grew at a 4 percent annual rate in the second quarter.
That's above the 3 percent rate that had been expected -- and a sharp reversal from the weather-impacted first quarter, when the economy contracted 2.9 percent.
But U.S. companies hired only 218,000 workers in July, a level that was below analysts' projections and was also down from June's numbers.
Still, it's the sixth month in the row the U.S. economy added 200,000 jobs or more.
That hasn't happened since 1997.
The U.S. jobless rate is now at a six year-low of 6.1 percent.
That'll be something the U.S. central bank will likely consider on Wednesday -- as Federal Reserve Chair Janet Yellen comes out of two-days of meetings.
Many economists say the improving unemployment rate and strengthenign economy point to a possible interest rate hike sooner than later.
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