Washington, Sept 27: The US economy grew at a better-than-expected 3.3 per cent annual rate in the second quarter, the government reported today, raising hopes the country is finally on the verge of mounting a sustained rebound from the 2001 recession. The increase in the gross domestic product -- the country's total output of goods and services -- for the April-June period was revised upward from a 3.1 per cent estimate made a month ago, reflecting newfound strength in such areas as housing construction, which has been booming this year. The 3.3 per cent GDP growth rate was better than expected with most economists thinking the spring GDP figure would show no change from last month's 3.1 per cent preliminary estimate, which had been an upward revision from the much weaker initial estimate of 2.4 per cent made two months ago. In a sign of the lingering effects of the country's hard times, the government also reported today that after-tax corporate profits dropped by 5 per cent in the second quarter, the worst quarterly showing since a 6.5 per cent decline in the fourth quarter of 2001.
The GDP grew at an anaemic rate of 1.4 per cent in both the fourth quarter of last year and the first three months of this year after a 4 per cent growth rate in the third quarter of 2002, a pace which had raised false hopes that the economy was beginning to mount a sustained rebound last year. Bureau Report