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WASHINGTON, July 30 (Xinhua) -- U.S. economic foundations remain strong and prospects remain strong for healthy growth, a senior U.S. Treasury official said Monday.
"Economic growth rebounded in the second quarter after slowing at the start of the year, and we anticipate growth to continue at a moderate pace through the balance of 2007," Phillip Swagel, Treasury Assistant Secretary for Economic Policy, said in a statement.
Swagel said the labor market remains healthy, with low unemployment, steady job creation, and ongoing wage gains that should support a rebound in consumer spending.
"Although the housing sector continues to be weak, and may remain a drag on GDP for the next several quarters, fundamentals provide a firm foundation for solid performance by the other sectors of the economy through the rest of the year," said the official.
Meanwhile, core inflation, which excludes volatile energy and food, appears to be contained, with little evidence that increased prices for energy and food have spilled over into broader measures of inflation, Swagel said.
In the April-to-June period, U.S. real GDP grew at a 3.4-percent annual rate, rebounding from a tiny 0.6-percent pace in the first three months, according to the estimate released Friday by the Commerce Department.
For the first half of this year, GDP growth averaged 2 percent at an annual rate, above the 1.6-percent pace posted over the second half of 2006, said Swagel.
"We expect GDP growth in the second half of the year to slow from the pace of the second quarter but to outpace growth in the first half as a whole," the official said.
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