US economic growth picks up in second quarter

WASHINGTON: The US economy accelerated in the second quarter as consumers ramped up spending and businesses invested more on equipment, but persistent sluggish wage gains cast a dark shadow over the growth outlook. Gross domestic product increased at a 2.6% annual rate in the April-June period, which included a boost from trade, the Commerce Department said in its advance estimate on Friday. That was more than double the first quarter’s downwardly revised 1.2% growth pace. There was, however, little inflation in the economy in the second quarter and wage growth decelerated despite a tightening labour market.