Consumer Spending and Investment Drive Solid Second Quarter Growth, Inflation Moderates

‎US Economy Beats Expectations, Grows at 2.4% Pace in Q2 Amid Recession Fears

^{Credit: Google}

The US economy exceeded forecasts, growing at an annualized pace of 2.4% in Q2, outperforming the expected 1.8% estimate. Consumer spending, nonresidential fixed investment, government spending, and inventory growth contributed to the solid quarter. Inflation moderated, with the Commerce Department’s inflation gauge rising 2.6%. Despite concerns of a recession and persistent interest rate hikes by the Federal Reserve, the economy displayed resilience. With robust employment gains and consumer spending, the positive data indicates a stronger-than-expected economy, while investors remain optimistic about the Fed’s rate policy.

BREAKING: US GDP growth accelerates to 2.4%, blowing past estimates https://t.co/dnZD6GDD0i pic.twitter.com/N1SKVXVtJ1
— Bloomberg (@business) July 27, 2023