US economy surged at 3.7% rate in April-June quarter

The U.S. economy posted a much bigger rebound in growth during the spring than previously reported, thanks to improvements in a number of areas including consumer spending and business investment.

The Commerce Department says the economy expanded at an annual rate of 3.7 percent in the April-June quarter, more than a percentage point greater than the 2.3 percent originally estimated.

It was the strongest growth since last summer and marked a sharp improvement from the anemic 0.6 percent advance during the January-March quarter when a harsh winter sapped activity.

Analysts believe growth has slowed a bit in the current quarter to around 2.5 percent. Some have expressed concern that shrinking global stock markets and a sharp slowdown in China will further weaken the economy in coming months.