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unleash more hiring and higher wages, they said.
• But the economy actually shrank in the first three months of this year at an annual rate of 2.9 percent. That's the sharpest quarterly contraction since the recession. Ferocious winter storms and freezing temperatures caused factories to close and prevented consumers from visiting shopping malls and auto dealers.
• Still, the winter failed to freeze hiring and job growth has continued with little to no interruption. This should help to speed economic growth because more jobs lead to more paychecks to spend.
• Most economists say annualized growth is tracking 3 percent to 3.5 percent in the current second quarter. Growth over the course of the entire year should be closer to 2 percent for the entire year, roughly similar to the 1.9 percent increase in gross domestic product achieved last year.
• Other than the weak growth at the start of the year, several other signs point to the improving health of the economy.
• Auto sales rose at the fastest pace in eight years in June. Dealers unloaded vehicles at an annual pace of 16.98 million last month. Factory orders picked up last month as well, according to a report this week by the Institute for Supply Management.
• Home sales also strengthened in May, after having sputtered in the middle of last year when higher mortgage rates and rising prices hurt affordability.
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