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% annual rate after shrinking at a 2.9% pace in the first quarter, according to a Reuters survey of economists.
The anticipated growth pace will, however, leave output in the first half of the year flat. Earlier in the second quarter, growth estimates were as high as 4%, but they were cut as trade, consumer spending and business investment rebounded from the winter slump by less than expected.
Growth for 2014 as a whole could average below 2%.
Employment growth, which has exceeded 200,000 jobs in each of the last five months, and strong readings on the factory and services sectors from the Institute for Supply Management underpin the bullish expectations for the rest of the year.
The Commerce Department will release its first snapshot of second-quarter GDP at 8:30 a.m. ET on Wednesday. It will also publish revisions to prior GDP data going back to 1999.
Also on Wednesday, payrolls processor ADP is due to release its private sector employment report for July at 8:15 a.m. which is expected to show a gain of 230,000 jobs, according to a Reuters poll, down from a gain of 281,000 in June.
