The BEA now estimates that real GDP grew by 4.6% in the second quarter. This revision means that the most recent quarter saw the fastest real GDP growth since 2006. That's a long time. Before we get too excited, let's remember that this comes on the heels of negative growth in the first quarter.
The growth was driven largely by changes in investment, which grew by $115.5 billion, or 19.1 percent on an annual basis.
Those who follow me on Twitter may recall that, back on July 3, I predicted that second quarter growth would come in at "something like 5 percent." My rationale was that the negative first quarter growth was likely due to short run supply factors associated with the polar vortex. After all, the unemployment rate fell consistently throughout the spring. Even a blind squirrel finds a nut once in a while.