Economic growth revised upward to 3% for quarter

WASHINGTON — The U.S. economy rebounded sharply in the spring, growing at the fastest pace in more than two years amid brisk consumer spending on autos and other goods.

The gross domestic product, the broadest measure of economic health, grew at an annual rate of 3 percent in the April-June quarter, the Commerce Department reported Wednesday. It was the best showing since a 3.2 percent gain in the first quarter of 2015.

The result is a healthy upward revision from the government’s initial estimate of 2.6 percent growth in the second quarter. The growth rate in the January-March quarter was a lackluster 1.2 percent.

President Donald Trump hailed the latest figures, declaring “we are really on our way.” Trump said if the economy is able to sustain growth at a 3 percent rate, it would create 12 million new jobs and $10 trillion in new economic activity over the next decade. During last year’s campaign, Trump pledged to boost economic growth to 4 percent or better.

The budget the president released in May projects GDP growth will rise to 3 percent over the next four years and remain at that level for the rest of the decade. However, the nonpartisan Congressional Budget Office is forecasting average growth of just 1.9 percent over the next decade.

On Wall Street, stocks climbed Wednesday as investors cheered the economic report.

Marcio Jose Sanchez / Associated Press Kathy Tringali of Big 5 Sporting Goods talks to Jarrell Palmer during a job fair in San Jose, Calif. The U.S. economy recorded a fast rate of growth.