Economy grew 3% in 2nd quarter, fastest pace in 2 years

The economy’s recovery marked its eighth birthday this summer — old by economic standards — but it is showing some unexpected vigor.

The Commerce Department said Wednesday that the economy had expanded at an annual rate of 3 percent in the second quarter of the year, better than initially estimated, and a substantial acceleration over the first quarter’s lackluster 1.2 percent pace.

The revised figure is still well below President Trump’s target of 4 percent, but it is the economy’s best showing in two years.

“The economy is stronger than you think,” said Chris Rupkey, chief financial economist at Mitsubishi UFJ Financial Group in New York. “Bet on it.