Economy Surged 4.2% In Second Quarter; Clinton Takes Credit for Gains
The economy grew at a robust annual rate of 4.2 percent this spring, the government reported yesterday, as consumers went on a buying spree, retailers restocked shelves, and governments loosened their purse strings.</br></br>It was the best quarterly performance for the economy in two years and a sharp turnaround from the lackluster growth rate of 0.3 percent last fall.</br></br>"This just confirms that the economy is basically in good shape," declared Stephen Roach, chief economist with the investment house of Morgan Stanley & Co.</br></br>The rapid expansion during April, May and June also was achieved without triggering any acceleration in price inflation -- a fact that cheered Wall Street. The Dow Jones industrial average jumped more than 65 points while interest rates on the benchmark 30-year U.S. Treasury bond fell to 6.83 {Details, Page F2}.</br></br>This latest report on the gross domestic product -- the government's broadest economic gauge -- will be the last until just before the November election. Immediately it became grist for the presidential race.