Economy seen regaining muscle in second quarter

U.S. economic growth likely regained steam in the second quarter as activity picked up broadly, which would bolster expectations for a stronger performance in the last six months of the year. Gross domestic product likely grew at a 3.0 percent annual rate after shrinking at a 2.9 percent pace in the first quarter, according to a Reuters survey of economists. "I don't think the contraction we saw in the first quarter is reflective of what's truly going on in the economy," said Gus Faucher, senior economist at PNC Financial Services Group in Pittsburgh. Earlier in the second quarter, growth estimates were as high as 4 percent, but they were cut as trade, consumer spending and business investment rebounded from the winter slump by less than expected.

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