Growth picks up

U.S. gross domestic product rose 2% on an annualized basis in the March quarter, a solid showing in the wake of the December quarter’s 0.5% expansion.

Nonresidential fixed investment, consumer spending, and government spending paced the economic growth, more than offsetting the effects of a rise in imports. Personal income rose 0.6% in March from February, while personal consumption rose 0.9%.

These positive developments should blunt fears about a near-term recession, though history tells us that economic change can occur without warning. For now, U.S. consumers have, and remain willing to spend, money.