Breaking: Economy shows strong rebound in 2nd quarter, with 4% growth in GDP

After a dismal winter, the U.S. economy sprang back to life in the April-June quarter, growing at a fast 4% annual rate on the strength of higher consumer and business spending.

The Commerce Department says the second-quarter rebound followed a sharp 2.1% annualized drop in economic activity in the January-March quarter. That figure was revised up from a previous estimate of a 2.9% decline. But it was still the biggest contraction since early 2009 during the depths of the Great Recession.

Last quarter’s rebound was broad-based, with consumers, businesses, the housing industry and state and local governments all combining to boost growth.

Economists expect that momentum to continue in the second half of this year, when they forecast growth of around 3%.