Surprise surge in US economy

The US economy grew at a better-than-expected 3.3% 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% estimate made a month ago, reflecting new-found strength in such areas as housing construction, which has been booming this year.